Correlation Between Bank Agris and Bk Harda
Can any of the company-specific risk be diversified away by investing in both Bank Agris and Bk Harda 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 Agris and Bk Harda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Agris Tbk and Bk Harda Internasional, you can compare the effects of market volatilities on Bank Agris and Bk Harda 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 Agris with a short position of Bk Harda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Agris and Bk Harda.
Diversification Opportunities for Bank Agris and Bk Harda
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and BBHI is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bank Agris Tbk and Bk Harda Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bk Harda Internasional and Bank Agris 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 Agris Tbk are associated (or correlated) with Bk Harda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bk Harda Internasional has no effect on the direction of Bank Agris i.e., Bank Agris and Bk Harda go up and down completely randomly.
Pair Corralation between Bank Agris and Bk Harda
Assuming the 90 days trading horizon Bank Agris Tbk is expected to generate 0.72 times more return on investment than Bk Harda. However, Bank Agris Tbk is 1.39 times less risky than Bk Harda. It trades about -0.14 of its potential returns per unit of risk. Bk Harda Internasional is currently generating about -0.11 per unit of risk. If you would invest 8,500 in Bank Agris Tbk on August 25, 2024 and sell it today you would lose (700.00) from holding Bank Agris Tbk or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Agris Tbk vs. Bk Harda Internasional
Performance |
| Timeline |
| Bank Agris Tbk |
| Bk Harda Internasional |
Bank Agris and Bk Harda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Agris and Bk Harda
The main advantage of trading using opposite Bank Agris and Bk Harda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Agris position performs unexpectedly, Bk Harda 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 Bk Harda will offset losses from the drop in Bk Harda's long position.| Bank Agris vs. Bank Ganesha Tbk | Bank Agris vs. Bank Yudha Bhakti | Bank Agris vs. Bk Harda Internasional | Bank Agris vs. Bank Mnc Internasional |
| Bk Harda vs. Paninvest Tbk | Bk Harda vs. Maskapai Reasuransi Indonesia | Bk Harda vs. Panin Sekuritas Tbk | Bk Harda vs. Wahana Ottomitra Multiartha |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |