Correlation Between Bank Artos and Prima Andalan
Can any of the company-specific risk be diversified away by investing in both Bank Artos and Prima Andalan 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 Prima Andalan 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 Prima Andalan Mandiri, you can compare the effects of market volatilities on Bank Artos and Prima Andalan 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 Prima Andalan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Artos and Prima Andalan.
Diversification Opportunities for Bank Artos and Prima Andalan
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Prima is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bank Artos Indonesia and Prima Andalan Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prima Andalan Mandiri 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 Prima Andalan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prima Andalan Mandiri has no effect on the direction of Bank Artos i.e., Bank Artos and Prima Andalan go up and down completely randomly.
Pair Corralation between Bank Artos and Prima Andalan
Assuming the 90 days trading horizon Bank Artos Indonesia is expected to under-perform the Prima Andalan. In addition to that, Bank Artos is 2.86 times more volatile than Prima Andalan Mandiri. It trades about -0.03 of its total potential returns per unit of risk. Prima Andalan Mandiri is currently generating about -0.01 per unit of volatility. If you would invest 531,293 in Prima Andalan Mandiri on September 3, 2024 and sell it today you would lose (3,793) from holding Prima Andalan Mandiri or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Artos Indonesia vs. Prima Andalan Mandiri
Performance |
| Timeline |
| Bank Artos Indonesia |
| Prima Andalan Mandiri |
Bank Artos and Prima Andalan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Artos and Prima Andalan
The main advantage of trading using opposite Bank Artos and Prima Andalan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Artos position performs unexpectedly, Prima Andalan 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 Prima Andalan will offset losses from the drop in Prima Andalan'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 |
| Prima Andalan vs. Baramulti Suksessarana Tbk | Prima Andalan vs. Mitrabara Adiperdana PT | Prima Andalan vs. Adaro Minerals Indonesia |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |