Correlation Between Bank Mandiri and Toro Energy
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Toro Energy 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 Toro Energy 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 Toro Energy Limited, you can compare the effects of market volatilities on Bank Mandiri and Toro Energy 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 Toro Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Toro Energy.
Diversification Opportunities for Bank Mandiri and Toro Energy
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Toro is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Toro Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toro Energy Limited 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 Toro Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toro Energy Limited has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Toro Energy go up and down completely randomly.
Pair Corralation between Bank Mandiri and Toro Energy
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Toro Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 3.58 times less risky than Toro Energy. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Toro Energy Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Toro Energy Limited on February 2, 2024 and sell it today you would earn a total of 3.00 from holding Toro Energy Limited or generate 10.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.91% |
Values | Daily Returns |
Bank Mandiri Persero vs. Toro Energy Limited
Performance |
Timeline |
Bank Mandiri Persero |
Toro Energy Limited |
Bank Mandiri and Toro Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Toro Energy
The main advantage of trading using opposite Bank Mandiri and Toro Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Toro Energy 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 Toro Energy will offset losses from the drop in Toro Energy's long position.Bank Mandiri vs. First Hawaiian | Bank Mandiri vs. Central Pacific Financial | Bank Mandiri vs. Territorial Bancorp | Bank Mandiri vs. Comerica |
Toro Energy vs. Pampa Metals | Toro Energy vs. Sun Summit Minerals | Toro Energy vs. Progressive Planet Solutions |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |