Correlation Between Bank Mnc and Bank Victoria
Can any of the company-specific risk be diversified away by investing in both Bank Mnc and Bank Victoria 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 Mnc and Bank Victoria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mnc Internasional and Bank Victoria International, you can compare the effects of market volatilities on Bank Mnc and Bank Victoria 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 Mnc with a short position of Bank Victoria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mnc and Bank Victoria.
Diversification Opportunities for Bank Mnc and Bank Victoria
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Bank is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mnc Internasional and Bank Victoria International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Victoria Intern and Bank Mnc 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 Mnc Internasional are associated (or correlated) with Bank Victoria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Victoria Intern has no effect on the direction of Bank Mnc i.e., Bank Mnc and Bank Victoria go up and down completely randomly.
Pair Corralation between Bank Mnc and Bank Victoria
Assuming the 90 days trading horizon Bank Mnc Internasional is expected to under-perform the Bank Victoria. In addition to that, Bank Mnc is 1.19 times more volatile than Bank Victoria International. It trades about -0.03 of its total potential returns per unit of risk. Bank Victoria International is currently generating about 0.0 per unit of volatility. If you would invest 10,600 in Bank Victoria International on November 5, 2024 and sell it today you would lose (1,300) from holding Bank Victoria International or give up 12.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bank Mnc Internasional vs. Bank Victoria International
Performance |
| Timeline |
| Bank Mnc Internasional |
| Bank Victoria Intern |
Bank Mnc and Bank Victoria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mnc and Bank Victoria
The main advantage of trading using opposite Bank Mnc and Bank Victoria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mnc position performs unexpectedly, Bank Victoria 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 Victoria will offset losses from the drop in Bank Victoria's long position.| Bank Mnc vs. Bank Capital Indonesia | Bank Mnc vs. Bank Pembangunan Daerah | Bank Mnc vs. Bank Victoria International | Bank Mnc vs. Bank Qnb Indonesia |
| Bank Victoria vs. Bank Qnb Indonesia | Bank Victoria vs. Bank Mnc Internasional | Bank Victoria vs. Bank Bumi Arta | Bank Victoria vs. Bank Capital 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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