Correlation Between KENEDIX OFFICE and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and BANK MANDIRI 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 KENEDIX OFFICE and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and BANK MANDIRI, you can compare the effects of market volatilities on KENEDIX OFFICE and BANK MANDIRI 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 KENEDIX OFFICE with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and BANK MANDIRI.
Diversification Opportunities for KENEDIX OFFICE and BANK MANDIRI
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KENEDIX and BANK is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and KENEDIX OFFICE 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 KENEDIX OFFICE INV are associated (or correlated) with BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and BANK MANDIRI go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and BANK MANDIRI
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.53 times more return on investment than BANK MANDIRI. However, KENEDIX OFFICE INV is 1.89 times less risky than BANK MANDIRI. It trades about -0.02 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.01 per unit of risk. If you would invest 103,000 in KENEDIX OFFICE INV on January 10, 2025 and sell it today you would lose (14,500) from holding KENEDIX OFFICE INV or give up 14.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.76% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. BANK MANDIRI
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| BANK MANDIRI |
KENEDIX OFFICE and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and BANK MANDIRI
The main advantage of trading using opposite KENEDIX OFFICE and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| KENEDIX OFFICE vs. ZhongAn Online P | KENEDIX OFFICE vs. AOYAMA TRADING | KENEDIX OFFICE vs. Chuangs China Investments | KENEDIX OFFICE vs. CapitaLand Investment Limited |
| BANK MANDIRI vs. ZhongAn Online P | BANK MANDIRI vs. CarsalesCom | BANK MANDIRI vs. YATRA ONLINE DL 0001 | BANK MANDIRI vs. MUTUIONLINE |
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.
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