Correlation Between Bank Mandiri and Dialight Plc
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Dialight Plc 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 Dialight Plc 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 Dialight plc, you can compare the effects of market volatilities on Bank Mandiri and Dialight Plc 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 Dialight Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Dialight Plc.
Diversification Opportunities for Bank Mandiri and Dialight Plc
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Dialight is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Dialight plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dialight plc 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 Dialight Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dialight plc has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Dialight Plc go up and down completely randomly.
Pair Corralation between Bank Mandiri and Dialight Plc
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Dialight Plc. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.04 times less risky than Dialight Plc. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Dialight plc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 260.00 in Dialight plc on August 15, 2025 and sell it today you would earn a total of 83.00 from holding Dialight plc or generate 31.92% 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. Dialight plc
Performance |
| Timeline |
| Bank Mandiri Persero |
| Dialight plc |
Bank Mandiri and Dialight Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Dialight Plc
The main advantage of trading using opposite Bank Mandiri and Dialight Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Dialight Plc 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 Dialight Plc will offset losses from the drop in Dialight Plc's long position.| Bank Mandiri vs. Erste Group Bank | Bank Mandiri vs. Postal Savings Bank | Bank Mandiri vs. Lloyds Banking Group | Bank Mandiri vs. ING Groep NV |
| Dialight Plc vs. AFC Energy plc | Dialight Plc vs. Ilika plc | Dialight Plc vs. Amaero International | Dialight Plc vs. Ten Pao Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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