Correlation Between Astra International and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Astra International and Bank Mandiri 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 Astra International and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra International Tbk and Bank Mandiri Persero, you can compare the effects of market volatilities on Astra International and Bank Mandiri 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 Astra International with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Bank Mandiri.
Diversification Opportunities for Astra International and Bank Mandiri
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astra and Bank is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero and Astra International 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 Astra International Tbk are associated (or correlated) with Bank Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mandiri Persero has no effect on the direction of Astra International i.e., Astra International and Bank Mandiri go up and down completely randomly.
Pair Corralation between Astra International and Bank Mandiri
Assuming the 90 days horizon Astra International Tbk is expected to generate 1.13 times more return on investment than Bank Mandiri. However, Astra International is 1.13 times more volatile than Bank Mandiri Persero. It trades about 0.16 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about 0.11 per unit of risk. If you would invest 659.00 in Astra International Tbk on September 9, 2025 and sell it today you would earn a total of 150.00 from holding Astra International Tbk or generate 22.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. Bank Mandiri Persero
Performance |
| Timeline |
| Astra International Tbk |
| Bank Mandiri Persero |
Astra International and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Bank Mandiri
The main advantage of trading using opposite Astra International and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Bank Mandiri 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 Bank Mandiri will offset losses from the drop in Bank Mandiri's long position.| Astra International vs. Continental AG PK | Astra International vs. Continental Aktiengesellschaft | Astra International vs. Subaru Corp ADR | Astra International vs. Subaru Corp |
| Bank Mandiri vs. BDO Unibank ADR | Bank Mandiri vs. Agricultural Bank of | Bank Mandiri vs. Laurentian Bank of | Bank Mandiri vs. Guardian Capital 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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