Correlation Between Bank Mandiri and JSR Corp
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and JSR Corp 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 Corp 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 Corp, you can compare the effects of market volatilities on Bank Mandiri and JSR Corp 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 Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and JSR Corp.
Diversification Opportunities for Bank Mandiri and JSR Corp
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and JSR is -0.64. 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 Corp 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 Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSR Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and JSR Corp go up and down completely randomly.
Pair Corralation between Bank Mandiri and JSR Corp
If you would invest 2,526 in JSR Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding JSR Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank Mandiri Persero vs. JSR Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| JSR Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Bank Mandiri and JSR Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and JSR Corp
The main advantage of trading using opposite Bank Mandiri and JSR Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, JSR Corp 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 Corp will offset losses from the drop in JSR Corp'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 |
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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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