Correlation Between Bank Artos and First Media
Can any of the company-specific risk be diversified away by investing in both Bank Artos and First Media 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 First Media 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 First Media Tbk, you can compare the effects of market volatilities on Bank Artos and First Media 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 First Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Artos and First Media.
Diversification Opportunities for Bank Artos and First Media
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and First is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bank Artos Indonesia and First Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Media 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 First Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Media Tbk has no effect on the direction of Bank Artos i.e., Bank Artos and First Media go up and down completely randomly.
Pair Corralation between Bank Artos and First Media
Assuming the 90 days trading horizon Bank Artos Indonesia is expected to under-perform the First Media. In addition to that, Bank Artos is 2.93 times more volatile than First Media Tbk. It trades about -0.24 of its total potential returns per unit of risk. First Media Tbk is currently generating about 0.06 per unit of volatility. If you would invest 8,500 in First Media Tbk on November 28, 2024 and sell it today you would earn a total of 100.00 from holding First Media Tbk or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bank Artos Indonesia vs. First Media Tbk
Performance |
| Timeline |
| Bank Artos Indonesia |
| First Media Tbk |
Bank Artos and First Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Artos and First Media
The main advantage of trading using opposite Bank Artos and First Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Artos position performs unexpectedly, First Media 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 First Media will offset losses from the drop in First Media'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 |
| First Media vs. FKS Food Sejahtera | First Media vs. PT Homeco Victoria | First Media vs. Metro Healthcare Indonesia | First Media vs. Humpuss Intermoda Transportasi |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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