Correlation Between Bank Mandiri and Bondbloxx ETF

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

Diversification Opportunities for Bank Mandiri and Bondbloxx ETF

0.22

Correlation Coefficient

Bank Mandiri  Bondbloxx ETF

Modest diversification

The 3 months correlation between Bank and Bondbloxx is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Bondbloxx ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bondbloxx ETF Trust 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 Bondbloxx ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bondbloxx ETF Trust has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Bondbloxx ETF go up and down completely randomly.

Pair Corralation between Bank Mandiri and Bondbloxx ETF

Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Bondbloxx ETF. In addition to that, Bank Mandiri is 7.86 times more volatile than Bondbloxx ETF Trust. It trades about -0.1 of its total potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.25 per unit of volatility. If you would invest  3,885  in Bondbloxx ETF Trust on December 4, 2024 and sell it today you would earn a total of  225.00  from holding Bondbloxx ETF Trust or generate 5.79% return on investment over 90 days.

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

Bank Mandiri Persero  vs.  Bondbloxx ETF Trust

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. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Bondbloxx ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bondbloxx ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Bondbloxx ETF is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bank Mandiri and Bondbloxx ETF

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

The idea behind Bank Mandiri Persero and Bondbloxx ETF Trust 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.