Correlation Between BANK MANDIRI and Link Real

Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Link Real 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 Link Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BANK MANDIRI and Link Real Estate, you can compare the effects of market volatilities on BANK MANDIRI and Link Real 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 Link Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Link Real.

Diversification Opportunities for BANK MANDIRI and Link Real

0.0

Correlation Coefficient

BANK MANDIRI  Link Real

Pay attention - limited upside

The 3 months correlation between BANK and Link is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Link Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Real Estate 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 Link Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Real Estate has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Link Real go up and down completely randomly.

Pair Corralation between BANK MANDIRI and Link Real

If you would invest  33.00  in BANK MANDIRI on October 22, 2024 and sell it today you would earn a total of  2.00  from holding BANK MANDIRI or generate 6.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.25%
Values	Daily Returns

BANK MANDIRI  vs.  Link Real Estate

BANK MANDIRI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BANK MANDIRI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Link Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Link Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Link Real is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BANK MANDIRI and Link Real

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

The idea behind BANK MANDIRI and Link Real Estate 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.