Correlation Between Infinity Bank and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Infinity Bank and Bank Mandiri 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 Infinity Bank and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinity Bank and Bank Mandiri Persero, you can compare the effects of market volatilities on Infinity Bank and Bank Mandiri 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 Infinity Bank with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Bank and Bank Mandiri.
Diversification Opportunities for Infinity Bank and Bank Mandiri
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinity and Bank is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Bank and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero and Infinity Bank 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 Infinity Bank are associated (or correlated) with Bank Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mandiri Persero has no effect on the direction of Infinity Bank i.e., Infinity Bank and Bank Mandiri go up and down completely randomly.
Pair Corralation between Infinity Bank and Bank Mandiri
Given the investment horizon of 90 days Infinity Bank is expected to generate 0.42 times more return on investment than Bank Mandiri. However, Infinity Bank is 2.37 times less risky than Bank Mandiri. It trades about 0.18 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.11 per unit of risk. If you would invest 940.00 in Infinity Bank on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Infinity Bank or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinity Bank vs. Bank Mandiri Persero
Performance |
| Timeline |
| Infinity Bank |
| Bank Mandiri Persero |
Infinity Bank and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Bank and Bank Mandiri
The main advantage of trading using opposite Infinity Bank and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Bank position performs unexpectedly, Bank Mandiri 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 Bank Mandiri will offset losses from the drop in Bank Mandiri's long position.| Infinity Bank vs. Piraeus Bank SA | Infinity Bank vs. Turkiye Garanti Bankasi | Infinity Bank vs. Delhi Bank Corp | Infinity Bank vs. Uwharrie Capital Corp |
| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
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.
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