Correlation Between Bank Mandiri and ISun
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and ISun 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 ISun 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 ISun Inc, you can compare the effects of market volatilities on Bank Mandiri and ISun 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 ISun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and ISun.
Diversification Opportunities for Bank Mandiri and ISun
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and ISun is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and ISun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISun Inc 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 ISun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISun Inc has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and ISun go up and down completely randomly.
Pair Corralation between Bank Mandiri and ISun
If you would invest 3.19 in ISun Inc on November 2, 2024 and sell it today you would earn a total of 0.00 from holding ISun Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Bank Mandiri Persero vs. ISun Inc
Performance |
| Timeline |
| Bank Mandiri Persero |
| ISun Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and ISun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and ISun
The main advantage of trading using opposite Bank Mandiri and ISun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, ISun 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 ISun will offset losses from the drop in ISun's long position.| Bank Mandiri vs. First Hawaiian | Bank Mandiri vs. Central Pacific Financial | Bank Mandiri vs. Territorial Bancorp | Bank Mandiri vs. Comerica |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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