Correlation Between Uwharrie Capital and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Uwharrie Capital 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 Uwharrie Capital and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uwharrie Capital Corp and Bank Mandiri Persero, you can compare the effects of market volatilities on Uwharrie Capital 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 Uwharrie Capital with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwharrie Capital and Bank Mandiri.
Diversification Opportunities for Uwharrie Capital and Bank Mandiri
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uwharrie and Bank is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp 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 Uwharrie Capital 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 Uwharrie Capital Corp 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 Uwharrie Capital i.e., Uwharrie Capital and Bank Mandiri go up and down completely randomly.
Pair Corralation between Uwharrie Capital and Bank Mandiri
Given the investment horizon of 90 days Uwharrie Capital Corp is expected to generate 0.16 times more return on investment than Bank Mandiri. However, Uwharrie Capital Corp is 6.29 times less risky than Bank Mandiri. It trades about 0.35 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.12 per unit of risk. If you would invest 811.00 in Uwharrie Capital Corp on December 1, 2024 and sell it today you would earn a total of 89.00 from holding Uwharrie Capital Corp or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uwharrie Capital Corp vs. Bank Mandiri Persero
Performance |
| Timeline |
| Uwharrie Capital Corp |
| Bank Mandiri Persero |
Uwharrie Capital and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwharrie Capital and Bank Mandiri
The main advantage of trading using opposite Uwharrie Capital and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwharrie Capital 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.| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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