Correlation Between PT Bank and RUECKER IMMOBILIEN

Can any of the company-specific risk be diversified away by investing in both PT Bank and RUECKER IMMOBILIEN 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 PT Bank and RUECKER IMMOBILIEN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Bank Mandiri and RUECKER IMMOBILIEN, you can compare the effects of market volatilities on PT Bank and RUECKER IMMOBILIEN 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 PT Bank with a short position of RUECKER IMMOBILIEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and RUECKER IMMOBILIEN.

Diversification Opportunities for PT Bank and RUECKER IMMOBILIEN

-0.46

Correlation Coefficient

PT Bank  RUECKER IMMOBILIEN

Very good diversification

The 3 months correlation between PQ9 and RUECKER is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and RUECKER IMMOBILIEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RUECKER IMMOBILIEN and PT Bank 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 PT Bank Mandiri are associated (or correlated) with RUECKER IMMOBILIEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RUECKER IMMOBILIEN has no effect on the direction of PT Bank i.e., PT Bank and RUECKER IMMOBILIEN go up and down completely randomly.

Pair Corralation between PT Bank and RUECKER IMMOBILIEN

Assuming the 90 days horizon PT Bank Mandiri is expected to under-perform the RUECKER IMMOBILIEN. In addition to that, PT Bank is 1.06 times more volatile than RUECKER IMMOBILIEN. It trades about -0.05 of its total potential returns per unit of risk. RUECKER IMMOBILIEN is currently generating about 0.18 per unit of volatility. If you would invest  370.00  in RUECKER IMMOBILIEN on December 21, 2024 and sell it today you would earn a total of  230.00  from holding RUECKER IMMOBILIEN or generate 62.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

PT Bank Mandiri  vs.  RUECKER IMMOBILIEN

PT Bank Mandiri

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Bank Mandiri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

RUECKER IMMOBILIEN

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RUECKER IMMOBILIEN are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, RUECKER IMMOBILIEN displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Bank and RUECKER IMMOBILIEN

The main advantage of trading using opposite PT Bank and RUECKER IMMOBILIEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN will offset losses from the drop in RUECKER IMMOBILIEN's long position.

The idea behind PT Bank Mandiri and RUECKER IMMOBILIEN pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.