Correlation Between BANK MANDIRI and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and UNIQA INSURANCE 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 UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and UNIQA INSURANCE GR, you can compare the effects of market volatilities on BANK MANDIRI and UNIQA INSURANCE 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 UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and UNIQA INSURANCE.
Diversification Opportunities for BANK MANDIRI and UNIQA INSURANCE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and UNIQA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and UNIQA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA INSURANCE GR 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 are associated (or correlated) with UNIQA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA INSURANCE GR has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between BANK MANDIRI and UNIQA INSURANCE
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the UNIQA INSURANCE. In addition to that, BANK MANDIRI is 2.35 times more volatile than UNIQA INSURANCE GR. It trades about -0.24 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.56 per unit of volatility. If you would invest 745.00 in UNIQA INSURANCE GR on October 13, 2024 and sell it today you would earn a total of 45.00 from holding UNIQA INSURANCE GR or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| BANK MANDIRI |
| UNIQA INSURANCE GR |
BANK MANDIRI and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and UNIQA INSURANCE
The main advantage of trading using opposite BANK MANDIRI and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, UNIQA INSURANCE 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 UNIQA INSURANCE will offset losses from the drop in UNIQA INSURANCE's long position.| BANK MANDIRI vs. Nishi Nippon Railroad Co | BANK MANDIRI vs. Southwest Airlines Co | BANK MANDIRI vs. GOLD ROAD RES | BANK MANDIRI vs. Pembina Pipeline Corp |
| UNIQA INSURANCE vs. SPORTING | UNIQA INSURANCE vs. Constellation Software | UNIQA INSURANCE vs. NTG Nordic Transport | UNIQA INSURANCE vs. BII Railway Transportation |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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