Correlation Between Bank Artos and Tempo Inti
Can any of the company-specific risk be diversified away by investing in both Bank Artos and Tempo Inti 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 Tempo Inti 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 Tempo Inti Media, you can compare the effects of market volatilities on Bank Artos and Tempo Inti 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 Tempo Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Artos and Tempo Inti.
Diversification Opportunities for Bank Artos and Tempo Inti
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Tempo is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bank Artos Indonesia and Tempo Inti Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempo Inti Media 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 Tempo Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempo Inti Media has no effect on the direction of Bank Artos i.e., Bank Artos and Tempo Inti go up and down completely randomly.
Pair Corralation between Bank Artos and Tempo Inti
Assuming the 90 days trading horizon Bank Artos Indonesia is expected to under-perform the Tempo Inti. But the stock apears to be less risky and, when comparing its historical volatility, Bank Artos Indonesia is 1.6 times less risky than Tempo Inti. The stock trades about -0.22 of its potential returns per unit of risk. The Tempo Inti Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14,200 in Tempo Inti Media on November 27, 2024 and sell it today you would earn a total of 300.00 from holding Tempo Inti Media or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Artos Indonesia vs. Tempo Inti Media
Performance |
| Timeline |
| Bank Artos Indonesia |
| Tempo Inti Media |
Bank Artos and Tempo Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Artos and Tempo Inti
The main advantage of trading using opposite Bank Artos and Tempo Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Artos position performs unexpectedly, Tempo Inti 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 Tempo Inti will offset losses from the drop in Tempo Inti'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 |
| Tempo Inti vs. Wicaksana Overseas International | Tempo Inti vs. Wahana Pronatural | Tempo Inti vs. Tigaraksa Satria Tbk | Tempo Inti vs. Millennium Pharmacon International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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