Correlation Between Bank Central and PT Multi
Can any of the company-specific risk be diversified away by investing in both Bank Central and PT Multi 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 Multi 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 Multi Garam, you can compare the effects of market volatilities on Bank Central and PT Multi 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 Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and PT Multi.
Diversification Opportunities for Bank Central and PT Multi
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and FOLK is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and PT Multi Garam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Multi Garam 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 Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Multi Garam has no effect on the direction of Bank Central i.e., Bank Central and PT Multi go up and down completely randomly.
Pair Corralation between Bank Central and PT Multi
If you would invest 5,000 in PT Multi Garam on November 3, 2024 and sell it today you would earn a total of 0.00 from holding PT Multi Garam or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Central Asia vs. PT Multi Garam
Performance |
| Timeline |
| Bank Central Asia |
| PT Multi Garam |
Bank Central and PT Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and PT Multi
The main advantage of trading using opposite Bank Central and PT Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, PT Multi 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 Multi will offset losses from the drop in PT Multi'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 Multi vs. HK Metals Utama | PT Multi vs. Pertamina Geothermal Energy | PT Multi vs. Garuda Metalindo Tbk | PT Multi vs. Victoria Insurance Tbk |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |