Correlation Between Bank Mandiri and Inocycle Technology
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Inocycle Technology 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 Inocycle Technology 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 Inocycle Technology Tbk, you can compare the effects of market volatilities on Bank Mandiri and Inocycle Technology 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 Inocycle Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Inocycle Technology.
Diversification Opportunities for Bank Mandiri and Inocycle Technology
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Inocycle is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Inocycle Technology Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inocycle Technology Tbk 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 Inocycle Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inocycle Technology Tbk has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Inocycle Technology go up and down completely randomly.
Pair Corralation between Bank Mandiri and Inocycle Technology
Assuming the 90 days trading horizon Bank Mandiri Persero is expected to generate 0.4 times more return on investment than Inocycle Technology. However, Bank Mandiri Persero is 2.53 times less risky than Inocycle Technology. It trades about 0.05 of its potential returns per unit of risk. Inocycle Technology Tbk is currently generating about 0.0 per unit of risk. If you would invest 478,051 in Bank Mandiri Persero on August 31, 2024 and sell it today you would earn a total of 136,949 from holding Bank Mandiri Persero or generate 28.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Inocycle Technology Tbk
Performance |
| Timeline |
| Bank Mandiri Persero |
| Inocycle Technology Tbk |
Bank Mandiri and Inocycle Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Inocycle Technology
The main advantage of trading using opposite Bank Mandiri and Inocycle Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Inocycle Technology 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 Inocycle Technology will offset losses from the drop in Inocycle Technology's long position.| Bank Mandiri vs. Bank BRISyariah Tbk | Bank Mandiri vs. Ace Hardware Indonesia | Bank Mandiri vs. Merdeka Copper Gold | Bank Mandiri vs. Mitra Pinasthika Mustika |
| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Bali Bintang Sejahtera |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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