Correlation Between BANK MANDIRI and RUECKER IMMOBILIEN

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

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

Diversification Opportunities for BANK MANDIRI and RUECKER IMMOBILIEN

0.73

Correlation Coefficient

BANK MANDIRI  RUECKER IMMOBILIEN

Poor diversification

The 3 months correlation between BANK and RUECKER is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding 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 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 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 BANK MANDIRI i.e., BANK MANDIRI and RUECKER IMMOBILIEN go up and down completely randomly.

Pair Corralation between BANK MANDIRI and RUECKER IMMOBILIEN

Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the RUECKER IMMOBILIEN. But the stock apears to be less risky and, when comparing its historical volatility, BANK MANDIRI is 1.03 times less risky than RUECKER IMMOBILIEN. The stock trades about -0.02 of its potential returns per unit of risk. The RUECKER IMMOBILIEN is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  350.00  in RUECKER IMMOBILIEN on October 7, 2024 and sell it today you would earn a total of  10.00  from holding RUECKER IMMOBILIEN or generate 2.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.44%
Values	Daily Returns

BANK MANDIRI  vs.  RUECKER IMMOBILIEN

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 latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

RUECKER IMMOBILIEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RUECKER IMMOBILIEN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with BANK MANDIRI and RUECKER IMMOBILIEN

The main advantage of trading using opposite BANK MANDIRI and RUECKER IMMOBILIEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI 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 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.