Correlation Between Bank Utica and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Bank Utica 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 Bank Utica and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Utica Ny and Bank Mandiri Persero, you can compare the effects of market volatilities on Bank Utica 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 Bank Utica with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Utica and Bank Mandiri.
Diversification Opportunities for Bank Utica and Bank Mandiri
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Bank is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bank Utica Ny 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 Bank Utica 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 Utica Ny 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 Bank Utica i.e., Bank Utica and Bank Mandiri go up and down completely randomly.
Pair Corralation between Bank Utica and Bank Mandiri
Assuming the 90 days horizon Bank Utica Ny is expected to generate 0.46 times more return on investment than Bank Mandiri. However, Bank Utica Ny is 2.17 times less risky than Bank Mandiri. It trades about 0.07 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about 0.03 per unit of risk. If you would invest 38,075 in Bank Utica Ny on September 3, 2024 and sell it today you would earn a total of 7,426 from holding Bank Utica Ny or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Utica Ny vs. Bank Mandiri Persero
Performance |
| Timeline |
| Bank Utica Ny |
| Bank Mandiri Persero |
Bank Utica and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Utica and Bank Mandiri
The main advantage of trading using opposite Bank Utica and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Utica 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.| Bank Utica vs. First Hawaiian | Bank Utica vs. Central Pacific Financial | Bank Utica vs. Territorial Bancorp | Bank Utica vs. Comerica |
| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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