Correlation Between Bank Mandiri and Oregon Pacific
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Oregon Pacific 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 Oregon Pacific 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 Oregon Pacific Bancorp, you can compare the effects of market volatilities on Bank Mandiri and Oregon Pacific 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 Oregon Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Oregon Pacific.
Diversification Opportunities for Bank Mandiri and Oregon Pacific
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Oregon is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Oregon Pacific Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oregon Pacific Bancorp 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 Oregon Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oregon Pacific Bancorp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Oregon Pacific go up and down completely randomly.
Pair Corralation between Bank Mandiri and Oregon Pacific
Assuming the 90 days horizon Bank Mandiri is expected to generate 1.07 times less return on investment than Oregon Pacific. In addition to that, Bank Mandiri is 2.18 times more volatile than Oregon Pacific Bancorp. It trades about 0.04 of its total potential returns per unit of risk. Oregon Pacific Bancorp is currently generating about 0.1 per unit of volatility. If you would invest 699.00 in Oregon Pacific Bancorp on September 1, 2024 and sell it today you would earn a total of 77.00 from holding Oregon Pacific Bancorp or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Oregon Pacific Bancorp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Oregon Pacific Bancorp |
Bank Mandiri and Oregon Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Oregon Pacific
The main advantage of trading using opposite Bank Mandiri and Oregon Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Oregon Pacific 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 Oregon Pacific will offset losses from the drop in Oregon Pacific's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| Oregon Pacific vs. 1ST SUMMIT BANCORP | Oregon Pacific vs. Apollo Bancorp | Oregon Pacific vs. The Farmers Bank | Oregon Pacific vs. Old National 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |