Correlation Between Bank Mandiri and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Oxford Lane 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 Oxford Lane 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 Oxford Lane Capital, you can compare the effects of market volatilities on Bank Mandiri and Oxford Lane 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 Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Oxford Lane.
Diversification Opportunities for Bank Mandiri and Oxford Lane
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Oxford is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Oxford Lane Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Lane Capital 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 Oxford Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Lane Capital has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Oxford Lane go up and down completely randomly.
Pair Corralation between Bank Mandiri and Oxford Lane
If you would invest 2,498 in Oxford Lane Capital on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Oxford Lane Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Oxford Lane Capital
Performance |
| Timeline |
| Bank Mandiri Persero |
| Oxford Lane Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Oxford Lane
The main advantage of trading using opposite Bank Mandiri and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Oxford Lane 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 Oxford Lane will offset losses from the drop in Oxford Lane's long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
| Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Equity | Oxford Lane vs. Virtus AllianzGI Convertible | Oxford Lane vs. The Gabelli Equity |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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