Correlation Between Bank Mandiri and Teleflex Incorporated

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

Diversification Opportunities for Bank Mandiri and Teleflex Incorporated

-0.29

Correlation Coefficient

Bank Mandiri  Teleflex Incorporated

Very good diversification

The 3 months correlation between Bank and Teleflex is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated 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 Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Teleflex Incorporated go up and down completely randomly.

Pair Corralation between Bank Mandiri and Teleflex Incorporated

Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Teleflex Incorporated. In addition to that, Bank Mandiri is 1.42 times more volatile than Teleflex Incorporated. It trades about -0.01 of its total potential returns per unit of risk. Teleflex Incorporated is currently generating about 0.0 per unit of volatility. If you would invest  13,072  in Teleflex Incorporated on July 21, 2025 and sell it today you would lose (259.00) from holding Teleflex Incorporated or give up 1.98% of portfolio value over 90 days.

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

Bank Mandiri Persero  vs.  Teleflex Incorporated

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 nearly stable basic indicators, Bank Mandiri is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Teleflex Incorporated

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Teleflex Incorporated are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Teleflex Incorporated showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bank Mandiri and Teleflex Incorporated

The main advantage of trading using opposite Bank Mandiri and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Teleflex Incorporated 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 Teleflex Incorporated will offset losses from the drop in Teleflex Incorporated's long position.

The idea behind Bank Mandiri Persero and Teleflex Incorporated 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.