Correlation Between Bank Artos and Tower Bersama
Can any of the company-specific risk be diversified away by investing in both Bank Artos and Tower Bersama 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 Tower Bersama 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 Tower Bersama Infrastructure, you can compare the effects of market volatilities on Bank Artos and Tower Bersama 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 Tower Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Artos and Tower Bersama.
Diversification Opportunities for Bank Artos and Tower Bersama
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Tower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Artos Indonesia and Tower Bersama Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Bersama Infras 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 Tower Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Bersama Infras has no effect on the direction of Bank Artos i.e., Bank Artos and Tower Bersama go up and down completely randomly.
Pair Corralation between Bank Artos and Tower Bersama
Assuming the 90 days trading horizon Bank Artos Indonesia is expected to under-perform the Tower Bersama. In addition to that, Bank Artos is 2.34 times more volatile than Tower Bersama Infrastructure. It trades about -0.14 of its total potential returns per unit of risk. Tower Bersama Infrastructure is currently generating about 0.07 per unit of volatility. If you would invest 190,000 in Tower Bersama Infrastructure on August 29, 2024 and sell it today you would earn a total of 5,000 from holding Tower Bersama Infrastructure or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Artos Indonesia vs. Tower Bersama Infrastructure
Performance |
| Timeline |
| Bank Artos Indonesia |
| Tower Bersama Infras |
Bank Artos and Tower Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Artos and Tower Bersama
The main advantage of trading using opposite Bank Artos and Tower Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Artos position performs unexpectedly, Tower Bersama 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 Tower Bersama will offset losses from the drop in Tower Bersama'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 |
| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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