Correlation Between Bank Mandiri and Pioneer Bankcorp

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

Diversification Opportunities for Bank Mandiri and Pioneer Bankcorp

-0.43

Correlation Coefficient

Bank Mandiri  Pioneer Bankcorp

Very good diversification

The 3 months correlation between Bank and Pioneer is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Pioneer Bankcorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Bankcorp 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 Pioneer Bankcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Bankcorp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Pioneer Bankcorp go up and down completely randomly.

Pair Corralation between Bank Mandiri and Pioneer Bankcorp

Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Pioneer Bankcorp. In addition to that, Bank Mandiri is 1.56 times more volatile than Pioneer Bankcorp. It trades about -0.06 of its total potential returns per unit of risk. Pioneer Bankcorp is currently generating about 0.17 per unit of volatility. If you would invest  5,235  in Pioneer Bankcorp on May 6, 2025 and sell it today you would earn a total of  765.00  from holding Pioneer Bankcorp or generate 14.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Bank Mandiri Persero  vs.  Pioneer Bankcorp

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 weak 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.

Pioneer Bankcorp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Bankcorp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward-looking signals, Pioneer Bankcorp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bank Mandiri and Pioneer Bankcorp

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

The idea behind Bank Mandiri Persero and Pioneer Bankcorp 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.