Correlation Between Bank Mandiri and Via Renewables

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

Diversification Opportunities for Bank Mandiri and Via Renewables

0.08

Correlation Coefficient

Bank Mandiri  Via Renewables

Significant diversification

The 3 months correlation between Bank and Via is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Via Renewables go up and down completely randomly.

Pair Corralation between Bank Mandiri and Via Renewables

Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 9.64 times more return on investment than Via Renewables. However, Bank Mandiri is 9.64 times more volatile than Via Renewables. It trades about 0.14 of its potential returns per unit of risk. Via Renewables is currently generating about 0.04 per unit of risk. If you would invest  26.00  in Bank Mandiri Persero on September 11, 2025 and sell it today you would earn a total of  8.00  from holding Bank Mandiri Persero or generate 30.77% return on investment over 90 days.

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

Bank Mandiri Persero  vs.  Via Renewables

Bank Mandiri Persero

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Bank Mandiri Persero are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Bank Mandiri reported solid returns over the last few months and may actually be approaching a breakup point.

Via Renewables

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Via Renewables is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Bank Mandiri and Via Renewables

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

The idea behind Bank Mandiri Persero and Via Renewables 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.