Correlation Between Bank Mandiri and Cable One
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Cable One 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 Cable One 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 Cable One, you can compare the effects of market volatilities on Bank Mandiri and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Cable One.
Diversification Opportunities for Bank Mandiri and Cable One
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Cable is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Cable One go up and down completely randomly.
Pair Corralation between Bank Mandiri and Cable One
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Cable One. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 2.31 times less risky than Cable One. The pink sheet trades about -0.14 of its potential returns per unit of risk. The Cable One is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 14,031 in Cable One on July 19, 2025 and sell it today you would earn a total of 1,902 from holding Cable One or generate 13.56% 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. Cable One
Performance |
| Timeline |
| Bank Mandiri Persero |
| Cable One |
Bank Mandiri and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Cable One
The main advantage of trading using opposite Bank Mandiri and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| Bank Mandiri vs. Alpha Bank SA | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Piraeus Financial Holdings | Bank Mandiri vs. United Bancorp |
| Cable One vs. Liberty Broadband Srs | Cable One vs. Cogent Communications Group | Cable One vs. Charter Communications | Cable One vs. Liberty Broadband Srs |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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