Correlation Between Bank Central and PT MNC
Can any of the company-specific risk be diversified away by investing in both Bank Central and PT MNC 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 MNC 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 MNC Energy, you can compare the effects of market volatilities on Bank Central and PT MNC 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 MNC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and PT MNC.
Diversification Opportunities for Bank Central and PT MNC
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and IATA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and PT MNC Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT MNC Energy 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 MNC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT MNC Energy has no effect on the direction of Bank Central i.e., Bank Central and PT MNC go up and down completely randomly.
Pair Corralation between Bank Central and PT MNC
Assuming the 90 days trading horizon Bank Central Asia is expected to under-perform the PT MNC. In addition to that, Bank Central is 1.81 times more volatile than PT MNC Energy. It trades about -0.12 of its total potential returns per unit of risk. PT MNC Energy is currently generating about 0.0 per unit of volatility. If you would invest 4,900 in PT MNC Energy on November 4, 2024 and sell it today you would earn a total of 0.00 from holding PT MNC Energy or generate 0.0% 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. PT MNC Energy
Performance |
| Timeline |
| Bank Central Asia |
| PT MNC Energy |
Bank Central and PT MNC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and PT MNC
The main advantage of trading using opposite Bank Central and PT MNC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, PT MNC 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 MNC will offset losses from the drop in PT MNC'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 MNC vs. Mnc Investama Tbk | PT MNC vs. Exploitasi Energi Indonesia | PT MNC vs. Smartfren Telecom Tbk | PT MNC vs. Humpuss Intermoda Transportasi |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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 | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |