Correlation Between Bank Capital and Exploitasi Energi
Can any of the company-specific risk be diversified away by investing in both Bank Capital and Exploitasi Energi 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 Capital and Exploitasi Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Capital Indonesia and Exploitasi Energi Indonesia, you can compare the effects of market volatilities on Bank Capital and Exploitasi Energi 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 Capital with a short position of Exploitasi Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Capital and Exploitasi Energi.
Diversification Opportunities for Bank Capital and Exploitasi Energi
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Exploitasi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bank Capital Indonesia and Exploitasi Energi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploitasi Energi and Bank Capital 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 Capital Indonesia are associated (or correlated) with Exploitasi Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploitasi Energi has no effect on the direction of Bank Capital i.e., Bank Capital and Exploitasi Energi go up and down completely randomly.
Pair Corralation between Bank Capital and Exploitasi Energi
Assuming the 90 days trading horizon Bank Capital is expected to generate 75.53 times less return on investment than Exploitasi Energi. But when comparing it to its historical volatility, Bank Capital Indonesia is 16.41 times less risky than Exploitasi Energi. It trades about 0.09 of its potential returns per unit of risk. Exploitasi Energi Indonesia is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 2,000 in Exploitasi Energi Indonesia on October 26, 2024 and sell it today you would earn a total of 1,400 from holding Exploitasi Energi Indonesia or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Capital Indonesia vs. Exploitasi Energi Indonesia
Performance |
| Timeline |
| Bank Capital Indonesia |
| Exploitasi Energi |
Bank Capital and Exploitasi Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Capital and Exploitasi Energi
The main advantage of trading using opposite Bank Capital and Exploitasi Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Capital position performs unexpectedly, Exploitasi Energi 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 Exploitasi Energi will offset losses from the drop in Exploitasi Energi's long position.| Bank Capital vs. Bank Mnc Internasional | Bank Capital vs. Bank Qnb Indonesia | Bank Capital vs. Bank Victoria International | Bank Capital vs. Bank Rakyat Indonesia |
| Exploitasi Energi vs. Central Proteina Prima | Exploitasi Energi vs. Darma Henwa Tbk | Exploitasi Energi vs. Bakrieland Development Tbk | Exploitasi Energi vs. Energi Mega Persada |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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