Correlation Between BANK MANDIRI and TSOGO SUN
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and TSOGO SUN 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 TSOGO SUN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and TSOGO SUN GAMING, you can compare the effects of market volatilities on BANK MANDIRI and TSOGO SUN 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 TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and TSOGO SUN.
Diversification Opportunities for BANK MANDIRI and TSOGO SUN
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and TSOGO is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING 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 are associated (or correlated) with TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and TSOGO SUN go up and down completely randomly.
Pair Corralation between BANK MANDIRI and TSOGO SUN
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 6.34 times less return on investment than TSOGO SUN. But when comparing it to its historical volatility, BANK MANDIRI is 1.05 times less risky than TSOGO SUN. It trades about 0.01 of its potential returns per unit of risk. TSOGO SUN GAMING is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 30.00 in TSOGO SUN GAMING on September 3, 2025 and sell it today you would earn a total of 3.00 from holding TSOGO SUN GAMING or generate 10.0% 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 vs. TSOGO SUN GAMING
Performance |
| Timeline |
| BANK MANDIRI |
| TSOGO SUN GAMING |
BANK MANDIRI and TSOGO SUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and TSOGO SUN
The main advantage of trading using opposite BANK MANDIRI and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN's long position.| BANK MANDIRI vs. Wenzhou Kangning Hospital | BANK MANDIRI vs. Sims Metal Management | BANK MANDIRI vs. TRADEDOUBLER AB SK | BANK MANDIRI vs. Ramsay Health Care |
| TSOGO SUN vs. MARKET VECTR RETAIL | TSOGO SUN vs. Aegean Airlines SA | TSOGO SUN vs. FAST RETAIL ADR | TSOGO SUN vs. BURLINGTON STORES |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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