Correlation Between Bank Mandiri and Yanlord Land
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Yanlord Land 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 Yanlord Land 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 Yanlord Land Group, you can compare the effects of market volatilities on Bank Mandiri and Yanlord Land 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 Yanlord Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Yanlord Land.
Diversification Opportunities for Bank Mandiri and Yanlord Land
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Yanlord is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Yanlord Land Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanlord Land Group 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 Yanlord Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanlord Land Group has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Yanlord Land go up and down completely randomly.
Pair Corralation between Bank Mandiri and Yanlord Land
If you would invest 788.00 in Yanlord Land Group on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Yanlord Land Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Yanlord Land Group
Performance |
| Timeline |
| Bank Mandiri Persero |
| Yanlord Land Group |
Bank Mandiri and Yanlord Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Yanlord Land
The main advantage of trading using opposite Bank Mandiri and Yanlord Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Yanlord Land 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 Yanlord Land will offset losses from the drop in Yanlord Land's long position.| Bank Mandiri vs. HDFC Bank Limited | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. Fifth Third Bancorp |
| Yanlord Land vs. Best Buy Co | Yanlord Land vs. Norfolk Southern | Yanlord Land vs. JD Sports Fashion | Yanlord Land vs. Academy Sports Outdoors |
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.
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