Correlation Between Bank Mandiri and FS Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and FS Bancorp 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 FS Bancorp 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 FS Bancorp, you can compare the effects of market volatilities on Bank Mandiri and FS Bancorp 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 FS Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and FS Bancorp.
Diversification Opportunities for Bank Mandiri and FS Bancorp
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and FXLG is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and FS Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS Bancorp 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 FS Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS Bancorp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and FS Bancorp go up and down completely randomly.
Pair Corralation between Bank Mandiri and FS Bancorp
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the FS Bancorp. In addition to that, Bank Mandiri is 6.24 times more volatile than FS Bancorp. It trades about -0.11 of its total potential returns per unit of risk. FS Bancorp is currently generating about 0.21 per unit of volatility. If you would invest 3,100 in FS Bancorp on September 1, 2024 and sell it today you would earn a total of 50.00 from holding FS Bancorp or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. FS Bancorp
Performance |
| Timeline |
| Bank Mandiri Persero |
| FS Bancorp |
Bank Mandiri and FS Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and FS Bancorp
The main advantage of trading using opposite Bank Mandiri and FS Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, FS Bancorp 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 FS Bancorp will offset losses from the drop in FS Bancorp's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| FS Bancorp vs. Eastern Michigan Financial | FS Bancorp vs. Grand River Commerce | FS Bancorp vs. Bank of Botetourt | FS Bancorp vs. AmeriServ Financial |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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