Correlation Between Bank Mandiri and Baraboo Bancorporation
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Baraboo Bancorporation 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 Baraboo Bancorporation 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 Baraboo Bancorporation, you can compare the effects of market volatilities on Bank Mandiri and Baraboo Bancorporation 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 Baraboo Bancorporation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Baraboo Bancorporation.
Diversification Opportunities for Bank Mandiri and Baraboo Bancorporation
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Baraboo is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Baraboo Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baraboo Bancorporation 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 Baraboo Bancorporation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baraboo Bancorporation has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Baraboo Bancorporation go up and down completely randomly.
Pair Corralation between Bank Mandiri and Baraboo Bancorporation
Assuming the 90 days horizon Bank Mandiri is expected to generate 1.44 times less return on investment than Baraboo Bancorporation. But when comparing it to its historical volatility, Bank Mandiri Persero is 1.88 times less risky than Baraboo Bancorporation. It trades about 0.02 of its potential returns per unit of risk. Baraboo Bancorporation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 355.00 in Baraboo Bancorporation on October 21, 2024 and sell it today you would earn a total of 4.00 from holding Baraboo Bancorporation or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 85.89% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Baraboo Bancorp.
Performance |
| Timeline |
| Bank Mandiri Persero |
| Baraboo Bancorporation |
Bank Mandiri and Baraboo Bancorporation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Baraboo Bancorporation
The main advantage of trading using opposite Bank Mandiri and Baraboo Bancorporation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Baraboo Bancorporation 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 Baraboo Bancorporation will offset losses from the drop in Baraboo Bancorporation's long position.| Bank Mandiri vs. The Farmers Bank | Bank Mandiri vs. CCSB Financial Corp | Bank Mandiri vs. Bank of Utica | Bank Mandiri vs. Delhi Bank Corp |
| Baraboo Bancorporation vs. Andover Bancorp | Baraboo Bancorporation vs. Aozora Bank Ltd | Baraboo Bancorporation vs. Israel Discount Bank | Baraboo Bancorporation vs. Schweizerische Nationalbank |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |