Correlation Between Uwharrie Capital and Bank Negara
Can any of the company-specific risk be diversified away by investing in both Uwharrie Capital and Bank Negara 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 Negara 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 Negara Indonesia, you can compare the effects of market volatilities on Uwharrie Capital and Bank Negara 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 Negara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwharrie Capital and Bank Negara.
Diversification Opportunities for Uwharrie Capital and Bank Negara
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Uwharrie and Bank is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp and Bank Negara Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Negara Indonesia 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 Negara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Negara Indonesia has no effect on the direction of Uwharrie Capital i.e., Uwharrie Capital and Bank Negara go up and down completely randomly.
Pair Corralation between Uwharrie Capital and Bank Negara
Given the investment horizon of 90 days Uwharrie Capital is expected to generate 2.92 times less return on investment than Bank Negara. But when comparing it to its historical volatility, Uwharrie Capital Corp is 6.75 times less risky than Bank Negara. It trades about 0.07 of its potential returns per unit of risk. Bank Negara Indonesia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,723 in Bank Negara Indonesia on September 3, 2024 and sell it today you would lose (178.00) from holding Bank Negara Indonesia or give up 10.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.76% |
| Values | Daily Returns |
Uwharrie Capital Corp vs. Bank Negara Indonesia
Performance |
| Timeline |
| Uwharrie Capital Corp |
| Bank Negara Indonesia |
Uwharrie Capital and Bank Negara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwharrie Capital and Bank Negara
The main advantage of trading using opposite Uwharrie Capital and Bank Negara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwharrie Capital position performs unexpectedly, Bank Negara 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 Negara will offset losses from the drop in Bank Negara'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 Negara vs. First Hawaiian | Bank Negara vs. Central Pacific Financial | Bank Negara vs. Territorial Bancorp | Bank Negara vs. Comerica |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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