Correlation Between Bank Central and PT Janu
Can any of the company-specific risk be diversified away by investing in both Bank Central and PT Janu 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 Central and PT Janu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and PT Janu Putra, you can compare the effects of market volatilities on Bank Central and PT Janu 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 Central with a short position of PT Janu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and PT Janu.
Diversification Opportunities for Bank Central and PT Janu
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and AYAM is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and PT Janu Putra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Janu Putra and Bank Central 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 Central Asia are associated (or correlated) with PT Janu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Janu Putra has no effect on the direction of Bank Central i.e., Bank Central and PT Janu go up and down completely randomly.
Pair Corralation between Bank Central and PT Janu
Assuming the 90 days trading horizon Bank Central Asia is expected to under-perform the PT Janu. In addition to that, Bank Central is 1.31 times more volatile than PT Janu Putra. It trades about -0.07 of its total potential returns per unit of risk. PT Janu Putra is currently generating about 0.16 per unit of volatility. If you would invest 14,100 in PT Janu Putra on November 28, 2024 and sell it today you would earn a total of 700.00 from holding PT Janu Putra or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bank Central Asia vs. PT Janu Putra
Performance |
| Timeline |
| Bank Central Asia |
| PT Janu Putra |
Bank Central and PT Janu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and PT Janu
The main advantage of trading using opposite Bank Central and PT Janu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, PT Janu 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 PT Janu will offset losses from the drop in PT Janu's long position.| Bank Central vs. Bank Rakyat Indonesia | Bank Central vs. Bank Mandiri Persero | Bank Central vs. Bank Negara Indonesia | Bank Central vs. Astra International Tbk |
| PT Janu vs. PT Hetzer Medical | PT Janu vs. City Retail Developments | PT Janu vs. Smartfren Telecom Tbk | PT Janu vs. Lotte Chemical Titan |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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