Correlation Between REINET INVESTMENTS and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both REINET INVESTMENTS and BANK MANDIRI 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 REINET INVESTMENTS and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REINET INVESTMENTS SCA and BANK MANDIRI, you can compare the effects of market volatilities on REINET INVESTMENTS and BANK MANDIRI 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 REINET INVESTMENTS with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of REINET INVESTMENTS and BANK MANDIRI.
Diversification Opportunities for REINET INVESTMENTS and BANK MANDIRI
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between REINET and BANK is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding REINET INVESTMENTS SCA and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and REINET INVESTMENTS 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 REINET INVESTMENTS SCA are associated (or correlated) with BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of REINET INVESTMENTS i.e., REINET INVESTMENTS and BANK MANDIRI go up and down completely randomly.
Pair Corralation between REINET INVESTMENTS and BANK MANDIRI
Assuming the 90 days horizon REINET INVESTMENTS SCA is expected to generate 0.46 times more return on investment than BANK MANDIRI. However, REINET INVESTMENTS SCA is 2.17 times less risky than BANK MANDIRI. It trades about -0.02 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.06 per unit of risk. If you would invest 2,440 in REINET INVESTMENTS SCA on September 1, 2024 and sell it today you would lose (20.00) from holding REINET INVESTMENTS SCA or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
REINET INVESTMENTS SCA vs. BANK MANDIRI
Performance |
| Timeline |
| REINET INVESTMENTS SCA |
| BANK MANDIRI |
REINET INVESTMENTS and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REINET INVESTMENTS and BANK MANDIRI
The main advantage of trading using opposite REINET INVESTMENTS and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REINET INVESTMENTS position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| REINET INVESTMENTS vs. LG Display Co | REINET INVESTMENTS vs. ETFS Coffee ETC | REINET INVESTMENTS vs. Luckin Coffee | REINET INVESTMENTS vs. Madison Square Garden |
| BANK MANDIRI vs. DEVRY EDUCATION GRP | BANK MANDIRI vs. Pebblebrook Hotel Trust | BANK MANDIRI vs. Xinhua Winshare Publishing | BANK MANDIRI vs. Laureate Education |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |