Correlation Between Bank Mandiri and Oconee Financial
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Oconee Financial 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 Oconee Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and Oconee Financial, you can compare the effects of market volatilities on Bank Mandiri and Oconee Financial 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 Oconee Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Oconee Financial.
Diversification Opportunities for Bank Mandiri and Oconee Financial
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Oconee is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Oconee Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oconee Financial 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 Persero are associated (or correlated) with Oconee Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oconee Financial has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Oconee Financial go up and down completely randomly.
Pair Corralation between Bank Mandiri and Oconee Financial
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 7.35 times more return on investment than Oconee Financial. However, Bank Mandiri is 7.35 times more volatile than Oconee Financial. It trades about 0.03 of its potential returns per unit of risk. Oconee Financial is currently generating about 0.18 per unit of risk. If you would invest 41.00 in Bank Mandiri Persero on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Bank Mandiri Persero or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Oconee Financial
Performance |
| Timeline |
| Bank Mandiri Persero |
| Oconee Financial |
Bank Mandiri and Oconee Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Oconee Financial
The main advantage of trading using opposite Bank Mandiri and Oconee Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Oconee Financial 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 Oconee Financial will offset losses from the drop in Oconee Financial's long position.| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
| Oconee Financial vs. First Hawaiian | Oconee Financial vs. Central Pacific Financial | Oconee Financial vs. Territorial Bancorp | Oconee Financial vs. Comerica |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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