Correlation Between Bank Mandiri and ProConcept Marketing

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

Diversification Opportunities for Bank Mandiri and ProConcept Marketing

-0.58

Correlation Coefficient

Bank Mandiri  ProConcept Marketing

Excellent diversification

The 3 months correlation between Bank and ProConcept is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and ProConcept Marketing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProConcept Marketing 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 ProConcept Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProConcept Marketing has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and ProConcept Marketing go up and down completely randomly.

Pair Corralation between Bank Mandiri and ProConcept Marketing

Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the ProConcept Marketing. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 17.65 times less risky than ProConcept Marketing. The pink sheet trades about -0.04 of its potential returns per unit of risk. The ProConcept Marketing Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3.70  in ProConcept Marketing Group on August 14, 2025 and sell it today you would earn a total of  0.02  from holding ProConcept Marketing Group or generate 0.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Bank Mandiri Persero  vs.  ProConcept Marketing Group

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. In spite of fairly strong basic indicators, Bank Mandiri is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ProConcept Marketing

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ProConcept Marketing Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, ProConcept Marketing displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bank Mandiri and ProConcept Marketing

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

The idea behind Bank Mandiri Persero and ProConcept Marketing Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.