Correlation Between Bank Mandiri and Granite Real
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Granite Real 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 Granite Real 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 Granite Real Estate, you can compare the effects of market volatilities on Bank Mandiri and Granite Real 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 Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Granite Real.
Diversification Opportunities for Bank Mandiri and Granite Real
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Granite is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate 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 Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Granite Real go up and down completely randomly.
Pair Corralation between Bank Mandiri and Granite Real
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Granite Real. In addition to that, Bank Mandiri is 1.16 times more volatile than Granite Real Estate. It trades about -0.13 of its total potential returns per unit of risk. Granite Real Estate is currently generating about 0.06 per unit of volatility. If you would invest 5,332 in Granite Real Estate on September 2, 2024 and sell it today you would earn a total of 112.00 from holding Granite Real Estate or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Granite Real Estate
Performance |
| Timeline |
| Bank Mandiri Persero |
| Granite Real Estate |
Bank Mandiri and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Granite Real
The main advantage of trading using opposite Bank Mandiri and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Granite Real 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 Granite Real will offset losses from the drop in Granite Real's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Granite Real vs. Public Storage | Granite Real vs. Public Storage | Granite Real vs. Public Storage | Granite Real vs. Public Storage |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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