Correlation Between United Overseas and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both United Overseas and Bank Mandiri 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 United Overseas and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Overseas Bank and Bank Mandiri Persero, you can compare the effects of market volatilities on United Overseas and Bank Mandiri 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 United Overseas with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Overseas and Bank Mandiri.
Diversification Opportunities for United Overseas and Bank Mandiri
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Bank is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding United Overseas Bank and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero and United Overseas 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 United Overseas Bank are associated (or correlated) with Bank Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mandiri Persero has no effect on the direction of United Overseas i.e., United Overseas and Bank Mandiri go up and down completely randomly.
Pair Corralation between United Overseas and Bank Mandiri
Assuming the 90 days horizon United Overseas Bank is expected to generate 0.56 times more return on investment than Bank Mandiri. However, United Overseas Bank is 1.79 times less risky than Bank Mandiri. It trades about 0.07 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about 0.02 per unit of risk. If you would invest 4,070 in United Overseas Bank on November 2, 2024 and sell it today you would earn a total of 1,473 from holding United Overseas Bank or generate 36.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Overseas Bank vs. Bank Mandiri Persero
Performance |
| Timeline |
| United Overseas Bank |
| Bank Mandiri Persero |
United Overseas and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Overseas and Bank Mandiri
The main advantage of trading using opposite United Overseas and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Overseas position performs unexpectedly, Bank Mandiri 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 Bank Mandiri will offset losses from the drop in Bank Mandiri's long position.| United Overseas vs. KBC Groep NV | United Overseas vs. DBS Group Holdings | United Overseas vs. HomeStreet | United Overseas vs. Bank of Hawaii |
| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |