Correlation Between Bank Mandiri and BELLUS Health
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and BELLUS Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank Mandiri and BELLUS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and BELLUS Health, you can compare the effects of market volatilities on Bank Mandiri and BELLUS Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bank Mandiri with a short position of BELLUS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and BELLUS Health.
Diversification Opportunities for Bank Mandiri and BELLUS Health
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and BELLUS is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and BELLUS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BELLUS Health and Bank Mandiri is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bank Mandiri Persero are associated (or correlated) with BELLUS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BELLUS Health has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and BELLUS Health go up and down completely randomly.
Pair Corralation between Bank Mandiri and BELLUS Health
Assuming the 90 days horizon Bank Mandiri is expected to generate 4.53 times less return on investment than BELLUS Health. But when comparing it to its historical volatility, Bank Mandiri Persero is 3.87 times less risky than BELLUS Health. It trades about 0.04 of its potential returns per unit of risk. BELLUS Health is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 895.00 in BELLUS Health on February 28, 2024 and sell it today you would earn a total of 579.00 from holding BELLUS Health or generate 64.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 53.94% |
Values | Daily Returns |
Bank Mandiri Persero vs. BELLUS Health
Performance |
Timeline |
Bank Mandiri Persero |
BELLUS Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and BELLUS Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and BELLUS Health
The main advantage of trading using opposite Bank Mandiri and BELLUS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, BELLUS Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BELLUS Health will offset losses from the drop in BELLUS Health's long position.Bank Mandiri vs. First Hawaiian | Bank Mandiri vs. Central Pacific Financial | Bank Mandiri vs. Comerica | Bank Mandiri vs. Lloyds Banking Group |
BELLUS Health vs. Terns Pharmaceuticals | BELLUS Health vs. Amylyx Pharmaceuticals | BELLUS Health vs. Acumen Pharmaceuticals | BELLUS Health vs. Inozyme PharmaInc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |