Correlation Between Infineon Technologies and PT Bank
Can any of the company-specific risk be diversified away by investing in both Infineon Technologies and PT Bank 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 Infineon Technologies and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infineon Technologies AG and PT Bank Mandiri, you can compare the effects of market volatilities on Infineon Technologies and PT Bank 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 Infineon Technologies with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infineon Technologies and PT Bank.
Diversification Opportunities for Infineon Technologies and PT Bank
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infineon and PQ9 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Infineon Technologies AG and PT Bank Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Mandiri and Infineon Technologies 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 Infineon Technologies AG are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Mandiri has no effect on the direction of Infineon Technologies i.e., Infineon Technologies and PT Bank go up and down completely randomly.
Pair Corralation between Infineon Technologies and PT Bank
Assuming the 90 days trading horizon Infineon Technologies AG is expected to generate 0.34 times more return on investment than PT Bank. However, Infineon Technologies AG is 2.93 times less risky than PT Bank. It trades about 0.18 of its potential returns per unit of risk. PT Bank Mandiri is currently generating about 0.0 per unit of risk. If you would invest 2,974 in Infineon Technologies AG on October 19, 2024 and sell it today you would earn a total of 427.00 from holding Infineon Technologies AG or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infineon Technologies AG vs. PT Bank Mandiri
Performance |
| Timeline |
| Infineon Technologies |
| PT Bank Mandiri |
Infineon Technologies and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infineon Technologies and PT Bank
The main advantage of trading using opposite Infineon Technologies and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infineon Technologies position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| Infineon Technologies vs. CANASIL RESOURCES | Infineon Technologies vs. Gossan Resources | Infineon Technologies vs. DevEx Resources Limited | Infineon Technologies vs. KTL GLOBAL |
| PT Bank vs. Khiron Life Sciences | PT Bank vs. GAMESTOP | PT Bank vs. MOUNT GIBSON IRON | PT Bank vs. Xiwang Special Steel |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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