Correlation Between Adira Dinamika and Bank Bukopin
Can any of the company-specific risk be diversified away by investing in both Adira Dinamika and Bank Bukopin 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 Adira Dinamika and Bank Bukopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adira Dinamika Multi and Bank Bukopin Tbk, you can compare the effects of market volatilities on Adira Dinamika and Bank Bukopin 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 Adira Dinamika with a short position of Bank Bukopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adira Dinamika and Bank Bukopin.
Diversification Opportunities for Adira Dinamika and Bank Bukopin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adira and Bank is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Adira Dinamika Multi and Bank Bukopin Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Bukopin Tbk and Adira Dinamika 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 Adira Dinamika Multi are associated (or correlated) with Bank Bukopin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Bukopin Tbk has no effect on the direction of Adira Dinamika i.e., Adira Dinamika and Bank Bukopin go up and down completely randomly.
Pair Corralation between Adira Dinamika and Bank Bukopin
Assuming the 90 days trading horizon Adira Dinamika is expected to generate 5.95 times less return on investment than Bank Bukopin. But when comparing it to its historical volatility, Adira Dinamika Multi is 2.45 times less risky than Bank Bukopin. It trades about 0.0 of its potential returns per unit of risk. Bank Bukopin Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,300 in Bank Bukopin Tbk on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Bank Bukopin Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adira Dinamika Multi vs. Bank Bukopin Tbk
Performance |
| Timeline |
| Adira Dinamika Multi |
| Bank Bukopin Tbk |
Adira Dinamika and Bank Bukopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adira Dinamika and Bank Bukopin
The main advantage of trading using opposite Adira Dinamika and Bank Bukopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adira Dinamika position performs unexpectedly, Bank Bukopin 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 Bukopin will offset losses from the drop in Bank Bukopin's long position.| Adira Dinamika vs. BFI Finance Indonesia | Adira Dinamika vs. Clipan Finance Indonesia | Adira Dinamika vs. Astra Otoparts Tbk | Adira Dinamika vs. Bank Danamon Indonesia |
| Bank Bukopin vs. Bank Danamon Indonesia | Bank Bukopin vs. Bank Cimb Niaga | Bank Bukopin vs. Bank Tabungan Negara | Bank Bukopin vs. Bank Jabar |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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