Correlation Between Bank Mandiri and JSR
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and JSR 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 JSR 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 JSR Corporation, you can compare the effects of market volatilities on Bank Mandiri and JSR 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 JSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and JSR.
Diversification Opportunities for Bank Mandiri and JSR
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and JSR is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and JSR Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSR Corporation 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 JSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSR Corporation has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and JSR go up and down completely randomly.
Pair Corralation between Bank Mandiri and JSR
Assuming the 90 days horizon Bank Mandiri is expected to generate 2.03 times less return on investment than JSR. But when comparing it to its historical volatility, Bank Mandiri Persero is 1.21 times less risky than JSR. It trades about 0.04 of its potential returns per unit of risk. JSR Corporation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,900 in JSR Corporation on August 31, 2024 and sell it today you would earn a total of 915.00 from holding JSR Corporation or generate 48.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.65% |
| Values | Daily Returns |
Bank Mandiri Persero vs. JSR Corp.
Performance |
| Timeline |
| Bank Mandiri Persero |
| JSR Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and JSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and JSR
The main advantage of trading using opposite Bank Mandiri and JSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, JSR 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 JSR will offset losses from the drop in JSR's long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
| JSR vs. Chemours Co | JSR vs. International Flavors Fragrances | JSR vs. Air Products and | JSR vs. PPG Industries |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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