Correlation Between Bank Mandiri and Uwharrie Capital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Uwharrie Capital 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 Uwharrie Capital 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 Uwharrie Capital Corp, you can compare the effects of market volatilities on Bank Mandiri and Uwharrie Capital 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 Uwharrie Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Uwharrie Capital.
Diversification Opportunities for Bank Mandiri and Uwharrie Capital
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Uwharrie is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Uwharrie Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uwharrie Capital Corp 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 Uwharrie Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uwharrie Capital Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Uwharrie Capital go up and down completely randomly.
Pair Corralation between Bank Mandiri and Uwharrie Capital
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Uwharrie Capital. In addition to that, Bank Mandiri is 1.91 times more volatile than Uwharrie Capital Corp. It trades about -0.11 of its total potential returns per unit of risk. Uwharrie Capital Corp is currently generating about -0.04 per unit of volatility. If you would invest 850.00 in Uwharrie Capital Corp on September 1, 2024 and sell it today you would lose (10.00) from holding Uwharrie Capital Corp or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Uwharrie Capital Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Uwharrie Capital Corp |
Bank Mandiri and Uwharrie Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Uwharrie Capital
The main advantage of trading using opposite Bank Mandiri and Uwharrie Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Uwharrie Capital 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 Uwharrie Capital will offset losses from the drop in Uwharrie Capital'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 |
| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings 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 | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |