Correlation Between Baraboo Bancorporation and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Baraboo Bancorporation 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 Baraboo Bancorporation and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baraboo Bancorporation and Bank Mandiri Persero, you can compare the effects of market volatilities on Baraboo Bancorporation 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 Baraboo Bancorporation with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baraboo Bancorporation and Bank Mandiri.
Diversification Opportunities for Baraboo Bancorporation and Bank Mandiri
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baraboo and Bank is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Baraboo Bancorp. and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero and Baraboo Bancorporation 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 Baraboo Bancorporation 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 Persero has no effect on the direction of Baraboo Bancorporation i.e., Baraboo Bancorporation and Bank Mandiri go up and down completely randomly.
Pair Corralation between Baraboo Bancorporation and Bank Mandiri
Given the investment horizon of 90 days Baraboo Bancorporation is expected to generate 0.14 times more return on investment than Bank Mandiri. However, Baraboo Bancorporation is 7.09 times less risky than Bank Mandiri. It trades about 0.26 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.16 per unit of risk. If you would invest 369.00 in Baraboo Bancorporation on November 28, 2024 and sell it today you would earn a total of 25.00 from holding Baraboo Bancorporation or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baraboo Bancorp. vs. Bank Mandiri Persero
Performance |
| Timeline |
| Baraboo Bancorporation |
| Bank Mandiri Persero |
Baraboo Bancorporation and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baraboo Bancorporation and Bank Mandiri
The main advantage of trading using opposite Baraboo Bancorporation and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baraboo Bancorporation 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.| Baraboo Bancorporation vs. Andover Bancorp | Baraboo Bancorporation vs. Aozora Bank Ltd | Baraboo Bancorporation vs. Israel Discount Bank | Baraboo Bancorporation vs. Schweizerische Nationalbank |
| Bank Mandiri vs. HDFC Bank Limited | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. Fifth Third Bancorp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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