Correlation Between Bank Mandiri and Global UAV

Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Global UAV 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 Global UAV 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 Global UAV Technologies, you can compare the effects of market volatilities on Bank Mandiri and Global UAV 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 Global UAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Global UAV.

Diversification Opportunities for Bank Mandiri and Global UAV

0.0

Correlation Coefficient

Bank Mandiri  Global UAV

Pay attention - limited upside

The 3 months correlation between Bank and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Global UAV Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global UAV Technologies 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 Global UAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global UAV Technologies has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Global UAV go up and down completely randomly.

Pair Corralation between Bank Mandiri and Global UAV

If you would invest  42.00  in Bank Mandiri Persero on February 5, 2024 and sell it today you would earn a total of  1.00  from holding Bank Mandiri Persero or generate 2.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Bank Mandiri Persero  vs.  Global UAV Technologies

Bank Mandiri Persero

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bank Mandiri Persero are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Bank Mandiri may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Global UAV Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global UAV Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Global UAV is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bank Mandiri and Global UAV

The main advantage of trading using opposite Bank Mandiri and Global UAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Global UAV 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 Global UAV will offset losses from the drop in Global UAV's long position.

The idea behind Bank Mandiri Persero and Global UAV Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.