Correlation Between BANK MANDIRI and Grand City
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Grand City 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 Grand City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Grand City Properties, you can compare the effects of market volatilities on BANK MANDIRI and Grand City 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 Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Grand City.
Diversification Opportunities for BANK MANDIRI and Grand City
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BANK and Grand is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties 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 are associated (or correlated) with Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Grand City go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Grand City
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 2.11 times less return on investment than Grand City. In addition to that, BANK MANDIRI is 1.28 times more volatile than Grand City Properties. It trades about 0.02 of its total potential returns per unit of risk. Grand City Properties is currently generating about 0.06 per unit of volatility. If you would invest 946.00 in Grand City Properties on August 27, 2024 and sell it today you would earn a total of 260.00 from holding Grand City Properties or generate 27.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Grand City Properties
Performance |
| Timeline |
| BANK MANDIRI |
| Grand City Properties |
BANK MANDIRI and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Grand City
The main advantage of trading using opposite BANK MANDIRI and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| BANK MANDIRI vs. OURGAME INTHOLDL 00005 | BANK MANDIRI vs. TSOGO SUN GAMING | BANK MANDIRI vs. Penn National Gaming | BANK MANDIRI vs. Samsung Electronics Co |
| Grand City vs. TERADATA | Grand City vs. National Storage Affiliates | Grand City vs. Hyrican Informationssysteme Aktiengesellschaft | Grand City vs. Pure 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |