Correlation Between Bank Mandiri and ZW Data
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and ZW Data 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 ZW Data 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 ZW Data Action, you can compare the effects of market volatilities on Bank Mandiri and ZW Data 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 ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and ZW Data.
Diversification Opportunities for Bank Mandiri and ZW Data
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and CNET is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action 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 ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and ZW Data go up and down completely randomly.
Pair Corralation between Bank Mandiri and ZW Data
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the ZW Data. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 3.02 times less risky than ZW Data. The pink sheet trades about -0.13 of its potential returns per unit of risk. The ZW Data Action is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 124.00 in ZW Data Action on October 20, 2025 and sell it today you would earn a total of 6.00 from holding ZW Data Action or generate 4.84% 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 Persero vs. ZW Data Action
Performance |
| Timeline |
| Bank Mandiri Persero |
| ZW Data Action |
Bank Mandiri and ZW Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and ZW Data
The main advantage of trading using opposite Bank Mandiri and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.| Bank Mandiri vs. Skandinaviska Enskilda Banken | Bank Mandiri vs. JAPAN POST BANK | Bank Mandiri vs. Swedbank AB | Bank Mandiri vs. Danske Bank AS |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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