Correlation Between BANK MANDIRI and Realord Group
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Realord Group 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 Realord Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Realord Group Holdings, you can compare the effects of market volatilities on BANK MANDIRI and Realord Group 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 Realord Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Realord Group.
Diversification Opportunities for BANK MANDIRI and Realord Group
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BANK and Realord is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Realord Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realord Group Holdings 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 Realord Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realord Group Holdings has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Realord Group go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Realord Group
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Realord Group. In addition to that, BANK MANDIRI is 5.38 times more volatile than Realord Group Holdings. It trades about -0.15 of its total potential returns per unit of risk. Realord Group Holdings is currently generating about -0.21 per unit of volatility. If you would invest 86.00 in Realord Group Holdings on December 6, 2024 and sell it today you would lose (3.00) from holding Realord Group Holdings or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BANK MANDIRI vs. Realord Group Holdings
Performance |
| Timeline |
| BANK MANDIRI |
| Realord Group Holdings |
BANK MANDIRI and Realord Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Realord Group
The main advantage of trading using opposite BANK MANDIRI and Realord Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Realord Group 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 Realord Group will offset losses from the drop in Realord Group's long position.| BANK MANDIRI vs. North American Construction | BANK MANDIRI vs. DAIRY FARM INTL | BANK MANDIRI vs. JLF INVESTMENT | BANK MANDIRI vs. FARM 51 GROUP |
| Realord Group vs. ZhongAn Online P | Realord Group vs. Gruppo Mutuionline SpA | Realord Group vs. YATRA ONLINE DL 0001 | Realord Group vs. Brockhaus Capital Management |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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