Correlation Between Bank Artos and Bank Bukopin
Can any of the company-specific risk be diversified away by investing in both Bank Artos 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 Bank Artos and Bank Bukopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Artos Indonesia and Bank Bukopin Tbk, you can compare the effects of market volatilities on Bank Artos 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 Bank Artos with a short position of Bank Bukopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Artos and Bank Bukopin.
Diversification Opportunities for Bank Artos and Bank Bukopin
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Bank is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank Artos Indonesia 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 Bank Artos 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 Artos Indonesia 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 Bank Artos i.e., Bank Artos and Bank Bukopin go up and down completely randomly.
Pair Corralation between Bank Artos and Bank Bukopin
Assuming the 90 days trading horizon Bank Artos Indonesia is expected to under-perform the Bank Bukopin. In addition to that, Bank Artos is 1.05 times more volatile than Bank Bukopin Tbk. It trades about -0.14 of its total potential returns per unit of risk. Bank Bukopin Tbk is currently generating about -0.13 per unit of volatility. If you would invest 6,400 in Bank Bukopin Tbk on August 29, 2024 and sell it today you would lose (800.00) from holding Bank Bukopin Tbk or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Artos Indonesia vs. Bank Bukopin Tbk
Performance |
| Timeline |
| Bank Artos Indonesia |
| Bank Bukopin Tbk |
Bank Artos and Bank Bukopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Artos and Bank Bukopin
The main advantage of trading using opposite Bank Artos and Bank Bukopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Artos 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.| Bank Artos vs. Elang Mahkota Teknologi | Bank Artos vs. Bank Yudha Bhakti | Bank Artos vs. Bk Harda Internasional | Bank Artos vs. PT Bukalapak |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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