Correlation Between Bank Mandiri and Quaint Oak
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Quaint Oak 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 Quaint Oak 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 Quaint Oak Bancorp, you can compare the effects of market volatilities on Bank Mandiri and Quaint Oak 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 Quaint Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Quaint Oak.
Diversification Opportunities for Bank Mandiri and Quaint Oak
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Quaint is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Quaint Oak Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaint Oak 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 Quaint Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaint Oak Bancorp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Quaint Oak go up and down completely randomly.
Pair Corralation between Bank Mandiri and Quaint Oak
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.89 times more return on investment than Quaint Oak. However, Bank Mandiri Persero is 1.12 times less risky than Quaint Oak. It trades about 0.02 of its potential returns per unit of risk. Quaint Oak Bancorp is currently generating about -0.02 per unit of risk. If you would invest 1,525 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 86.00 from holding Bank Mandiri Persero or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.7% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Quaint Oak Bancorp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Quaint Oak Bancorp |
Bank Mandiri and Quaint Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Quaint Oak
The main advantage of trading using opposite Bank Mandiri and Quaint Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Quaint Oak 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 Quaint Oak will offset losses from the drop in Quaint Oak'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 |
| Quaint Oak vs. HUMANA INC | Quaint Oak vs. SCOR PK | Quaint Oak vs. Aquagold International | Quaint Oak vs. Thrivent High Yield |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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