Correlation Between Bank Mandiri and Intermap Technologies
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Intermap Technologies 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 Intermap Technologies 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 Intermap Technologies Corp, you can compare the effects of market volatilities on Bank Mandiri and Intermap Technologies 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 Intermap Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Intermap Technologies.
Diversification Opportunities for Bank Mandiri and Intermap Technologies
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Intermap is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Intermap Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermap Technologies 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 Intermap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermap Technologies has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Intermap Technologies go up and down completely randomly.
Pair Corralation between Bank Mandiri and Intermap Technologies
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.49 times more return on investment than Intermap Technologies. However, Bank Mandiri Persero is 2.05 times less risky than Intermap Technologies. It trades about 0.08 of its potential returns per unit of risk. Intermap Technologies Corp is currently generating about -0.07 per unit of risk. If you would invest 1,402 in Bank Mandiri Persero on October 23, 2024 and sell it today you would earn a total of 37.00 from holding Bank Mandiri Persero or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Intermap Technologies Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Intermap Technologies |
Bank Mandiri and Intermap Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Intermap Technologies
The main advantage of trading using opposite Bank Mandiri and Intermap Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Intermap Technologies 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 Intermap Technologies will offset losses from the drop in Intermap Technologies' long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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