Correlation Between Bank Mandiri and Harbor Custom
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Harbor Custom 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 Harbor Custom 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 Harbor Custom Development, you can compare the effects of market volatilities on Bank Mandiri and Harbor Custom 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 Harbor Custom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Harbor Custom.
Diversification Opportunities for Bank Mandiri and Harbor Custom
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Harbor is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Harbor Custom Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Custom Development 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 Harbor Custom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Custom Development has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Harbor Custom go up and down completely randomly.
Pair Corralation between Bank Mandiri and Harbor Custom
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.13 times more return on investment than Harbor Custom. However, Bank Mandiri Persero is 7.5 times less risky than Harbor Custom. It trades about 0.04 of its potential returns per unit of risk. Harbor Custom Development is currently generating about -0.01 per unit of risk. If you would invest 1,209 in Bank Mandiri Persero on September 2, 2024 and sell it today you would earn a total of 351.00 from holding Bank Mandiri Persero or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.05% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Harbor Custom Development
Performance |
| Timeline |
| Bank Mandiri Persero |
| Harbor Custom Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Harbor Custom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Harbor Custom
The main advantage of trading using opposite Bank Mandiri and Harbor Custom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Harbor Custom 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 Harbor Custom will offset losses from the drop in Harbor Custom's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Harbor Custom vs. Alset Ehome International | Harbor Custom vs. American Realty Investors | Harbor Custom vs. Forestar Group | Harbor Custom vs. Landsea Homes Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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