Correlation Between Bank Central and Sanurhasta Mitra
Can any of the company-specific risk be diversified away by investing in both Bank Central and Sanurhasta Mitra 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 Sanurhasta Mitra 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 Sanurhasta Mitra PT, you can compare the effects of market volatilities on Bank Central and Sanurhasta Mitra 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 Sanurhasta Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Sanurhasta Mitra.
Diversification Opportunities for Bank Central and Sanurhasta Mitra
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Sanurhasta is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Sanurhasta Mitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanurhasta Mitra 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 Sanurhasta Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanurhasta Mitra has no effect on the direction of Bank Central i.e., Bank Central and Sanurhasta Mitra go up and down completely randomly.
Pair Corralation between Bank Central and Sanurhasta Mitra
Assuming the 90 days trading horizon Bank Central Asia is expected to under-perform the Sanurhasta Mitra. But the stock apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 2.45 times less risky than Sanurhasta Mitra. The stock trades about -0.05 of its potential returns per unit of risk. The Sanurhasta Mitra PT is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 7,900 in Sanurhasta Mitra PT on November 27, 2024 and sell it today you would earn a total of 5,500 from holding Sanurhasta Mitra PT or generate 69.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Central Asia vs. Sanurhasta Mitra PT
Performance |
| Timeline |
| Bank Central Asia |
| Sanurhasta Mitra |
Bank Central and Sanurhasta Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Sanurhasta Mitra
The main advantage of trading using opposite Bank Central and Sanurhasta Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Sanurhasta Mitra 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 Sanurhasta Mitra will offset losses from the drop in Sanurhasta Mitra'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 |
| Sanurhasta Mitra vs. Galva Technologies Tbk | Sanurhasta Mitra vs. Dharma Polimetal Tbk | Sanurhasta Mitra vs. Kedawung Setia Industrial | Sanurhasta Mitra vs. HK Metals Utama |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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