Correlation Between Bank Central and Lini Imaji
Can any of the company-specific risk be diversified away by investing in both Bank Central and Lini Imaji 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 Lini Imaji 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 Lini Imaji Kreasi, you can compare the effects of market volatilities on Bank Central and Lini Imaji 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 Lini Imaji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Lini Imaji.
Diversification Opportunities for Bank Central and Lini Imaji
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Lini is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Lini Imaji Kreasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lini Imaji Kreasi 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 Lini Imaji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lini Imaji Kreasi has no effect on the direction of Bank Central i.e., Bank Central and Lini Imaji go up and down completely randomly.
Pair Corralation between Bank Central and Lini Imaji
Assuming the 90 days trading horizon Bank Central Asia is expected to under-perform the Lini Imaji. But the stock apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 6.46 times less risky than Lini Imaji. The stock trades about -0.11 of its potential returns per unit of risk. The Lini Imaji Kreasi is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 7,100 in Lini Imaji Kreasi on September 3, 2024 and sell it today you would earn a total of 6,400 from holding Lini Imaji Kreasi or generate 90.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Central Asia vs. Lini Imaji Kreasi
Performance |
| Timeline |
| Bank Central Asia |
| Lini Imaji Kreasi |
Bank Central and Lini Imaji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Lini Imaji
The main advantage of trading using opposite Bank Central and Lini Imaji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Lini Imaji 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 Lini Imaji will offset losses from the drop in Lini Imaji's long position.| Bank Central vs. Paninvest Tbk | Bank Central vs. Mitra Pinasthika Mustika | Bank Central vs. Jakarta Int Hotels | Bank Central vs. Asuransi Harta Aman |
| Lini Imaji vs. Global Mediacom Tbk | Lini Imaji vs. Hero Supermarket Tbk | Lini Imaji vs. Diamond Food Indonesia | Lini Imaji vs. Capital Financial 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |