Correlation Between Bank Mandiri and CECO Environmental
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and CECO Environmental 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 CECO Environmental 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 CECO Environmental Corp, you can compare the effects of market volatilities on Bank Mandiri and CECO Environmental 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 CECO Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and CECO Environmental.
Diversification Opportunities for Bank Mandiri and CECO Environmental
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and CECO is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and CECO Environmental Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CECO Environmental 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 CECO Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CECO Environmental Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and CECO Environmental go up and down completely randomly.
Pair Corralation between Bank Mandiri and CECO Environmental
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the CECO Environmental. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.71 times less risky than CECO Environmental. The pink sheet trades about -0.06 of its potential returns per unit of risk. The CECO Environmental Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,728 in CECO Environmental Corp on August 16, 2025 and sell it today you would earn a total of 2,199 from holding CECO Environmental Corp or generate 80.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. CECO Environmental Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| CECO Environmental Corp |
Bank Mandiri and CECO Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and CECO Environmental
The main advantage of trading using opposite Bank Mandiri and CECO Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, CECO Environmental 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 CECO Environmental will offset losses from the drop in CECO Environmental'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 |
| CECO Environmental vs. Purecycle Technologies Holdings | CECO Environmental vs. V2X Inc | CECO Environmental vs. Steelcase | CECO Environmental vs. Helios Technologies |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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