Correlation Between BANK MANDIRI and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Kimco Realty 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 Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Kimco Realty, you can compare the effects of market volatilities on BANK MANDIRI and Kimco Realty 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 Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Kimco Realty.
Diversification Opportunities for BANK MANDIRI and Kimco Realty
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and Kimco is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty 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 Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Kimco Realty go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Kimco Realty
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Kimco Realty. In addition to that, BANK MANDIRI is 4.01 times more volatile than Kimco Realty. It trades about -0.06 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.64 per unit of volatility. If you would invest 2,160 in Kimco Realty on September 1, 2024 and sell it today you would earn a total of 260.00 from holding Kimco Realty or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Kimco Realty
Performance |
| Timeline |
| BANK MANDIRI |
| Kimco Realty |
BANK MANDIRI and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Kimco Realty
The main advantage of trading using opposite BANK MANDIRI and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Kimco Realty 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 Kimco Realty will offset losses from the drop in Kimco Realty's long position.| BANK MANDIRI vs. DEVRY EDUCATION GRP | BANK MANDIRI vs. Pebblebrook Hotel Trust | BANK MANDIRI vs. Xinhua Winshare Publishing | BANK MANDIRI vs. Laureate Education |
| Kimco Realty vs. Live Nation Entertainment | Kimco Realty vs. CITY OFFICE REIT | Kimco Realty vs. Flutter Entertainment PLC | Kimco Realty vs. PARKEN Sport Entertainment |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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