Correlation Between Cellcom Israel and Bank Mandiri

Can any of the company-specific risk be diversified away by investing in both Cellcom Israel 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 Cellcom Israel and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cellcom Israel and Bank Mandiri Persero, you can compare the effects of market volatilities on Cellcom Israel 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 Cellcom Israel with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellcom Israel and Bank Mandiri.

Diversification Opportunities for Cellcom Israel and Bank Mandiri

0.0

Correlation Coefficient

Cellcom Israel  Bank Mandiri

Pay attention - limited upside

The 3 months correlation between Cellcom and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cellcom Israel 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 Cellcom Israel 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 Cellcom Israel 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 Cellcom Israel i.e., Cellcom Israel and Bank Mandiri go up and down completely randomly.

Pair Corralation between Cellcom Israel and Bank Mandiri

If you would invest (100.00) in Cellcom Israel on May 12, 2025 and sell it today you would earn a total of  100.00  from holding Cellcom Israel or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cellcom Israel  vs.  Bank Mandiri Persero

Cellcom Israel

Risk-Adjusted Performance

Weakest

Over the last 90 days Cellcom Israel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking indicators, Cellcom Israel is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Bank Mandiri Persero

Risk-Adjusted Performance

Weakest

Over the last 90 days Bank Mandiri Persero has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Cellcom Israel and Bank Mandiri

The main advantage of trading using opposite Cellcom Israel and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellcom Israel 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.

The idea behind Cellcom Israel and Bank Mandiri Persero 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.