Correlation Between Bank Mandiri and Pelayaran Kurnia | BMRI.JK vs. KLAS.JK

Correlation Between Bank Mandiri and Pelayaran Kurnia

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Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Pelayaran Kurnia 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 Pelayaran Kurnia 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 Pelayaran Kurnia Lautan, you can compare the effects of market volatilities on Bank Mandiri and Pelayaran Kurnia 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 Pelayaran Kurnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Pelayaran Kurnia.

Diversification Opportunities for Bank Mandiri and Pelayaran Kurnia

BankPelayaranDiversified AwayBankPelayaranDiversified Away100%
0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Bank and Pelayaran is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Pelayaran Kurnia Lautan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelayaran Kurnia Lautan 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 Pelayaran Kurnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelayaran Kurnia Lautan has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Pelayaran Kurnia go up and down completely randomly.

Pair Corralation between Bank Mandiri and Pelayaran Kurnia

Assuming the 90 days trading horizon Bank Mandiri Persero is expected to generate 0.45 times more return on investment than Pelayaran Kurnia. However, Bank Mandiri Persero is 2.21 times less risky than Pelayaran Kurnia. It trades about -0.16 of its potential returns per unit of risk. Pelayaran Kurnia Lautan is currently generating about -0.34 per unit of risk. If you would invest  625,000  in Bank Mandiri Persero on September 23, 2024 and sell it today you would lose (55,000) from holding Bank Mandiri Persero or give up 8.8% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bank Mandiri Persero  vs.  Pelayaran Kurnia Lautan

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 0204060
JavaScript chart by amCharts 3.21.15BMRI KLAS
       Timeline  
Bank Mandiri Persero 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bank Mandiri Persero has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec5,6005,8006,0006,2006,4006,6006,8007,0007,200
Pelayaran Kurnia Lautan 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Pelayaran Kurnia Lautan are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Pelayaran Kurnia may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec100120140160180

Bank Mandiri and Pelayaran Kurnia Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.44-2.57-1.71-0.85-0.01180.71.412.122.83 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15BMRI KLAS
       Returns  

Pair Trading with Bank Mandiri and Pelayaran Kurnia

The main advantage of trading using opposite Bank Mandiri and Pelayaran Kurnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Pelayaran Kurnia 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 Pelayaran Kurnia will offset losses from the drop in Pelayaran Kurnia's long position.
The idea behind Bank Mandiri Persero and Pelayaran Kurnia Lautan pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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