Correlation Between KBC Groep and Bank Mandiri

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

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

Diversification Opportunities for KBC Groep and Bank Mandiri

-0.31

Correlation Coefficient

KBC Groep  Bank Mandiri

Very good diversification

The 3 months correlation between KBC and Bank is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding KBC Groep NV 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 KBC Groep 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 KBC Groep NV 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 KBC Groep i.e., KBC Groep and Bank Mandiri go up and down completely randomly.

Pair Corralation between KBC Groep and Bank Mandiri

Assuming the 90 days horizon KBC Groep NV is expected to generate 0.64 times more return on investment than Bank Mandiri. However, KBC Groep NV is 1.55 times less risky than Bank Mandiri. It trades about 0.13 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.06 per unit of risk. If you would invest  4,721  in KBC Groep NV on May 6, 2025 and sell it today you would earn a total of  531.00  from holding KBC Groep NV or generate 11.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KBC Groep NV  vs.  Bank Mandiri Persero

KBC Groep NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KBC Groep NV are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, KBC Groep may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Bank Mandiri Persero

Risk-Adjusted Performance

Very Weak

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

Pair Trading with KBC Groep and Bank Mandiri

The main advantage of trading using opposite KBC Groep and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Groep 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 KBC Groep NV 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.