Correlation Between Bank Mandiri and Sanurhasta Mitra
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Sanurhasta Mitra 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 Sanurhasta Mitra 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 Sanurhasta Mitra PT, you can compare the effects of market volatilities on Bank Mandiri and Sanurhasta Mitra 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 Sanurhasta Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Sanurhasta Mitra.
Diversification Opportunities for Bank Mandiri and Sanurhasta Mitra
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Sanurhasta is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Sanurhasta Mitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanurhasta Mitra 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 Sanurhasta Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanurhasta Mitra has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Sanurhasta Mitra go up and down completely randomly.
Pair Corralation between Bank Mandiri and Sanurhasta Mitra
Assuming the 90 days trading horizon Bank Mandiri is expected to generate 6.93 times less return on investment than Sanurhasta Mitra. But when comparing it to its historical volatility, Bank Mandiri Persero is 2.83 times less risky than Sanurhasta Mitra. It trades about 0.1 of its potential returns per unit of risk. Sanurhasta Mitra PT is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Sanurhasta Mitra PT on October 21, 2024 and sell it today you would earn a total of 1,500 from holding Sanurhasta Mitra PT or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Sanurhasta Mitra PT
Performance |
| Timeline |
| Bank Mandiri Persero |
| Sanurhasta Mitra |
Bank Mandiri and Sanurhasta Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Sanurhasta Mitra
The main advantage of trading using opposite Bank Mandiri and Sanurhasta Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Sanurhasta Mitra 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 Sanurhasta Mitra will offset losses from the drop in Sanurhasta Mitra's long position.| Bank Mandiri vs. Bank Rakyat Indonesia | Bank Mandiri vs. Bank Central Asia | Bank Mandiri vs. Bank Negara Indonesia | Bank Mandiri vs. Astra International Tbk |
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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.
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