Correlation Between Bank Central and PT Sarimelati
Can any of the company-specific risk be diversified away by investing in both Bank Central and PT Sarimelati 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 Sarimelati 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 Sarimelati Kencana, you can compare the effects of market volatilities on Bank Central and PT Sarimelati 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 Sarimelati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and PT Sarimelati.
Diversification Opportunities for Bank Central and PT Sarimelati
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and PZZA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and PT Sarimelati Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sarimelati Kencana 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 Sarimelati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sarimelati Kencana has no effect on the direction of Bank Central i.e., Bank Central and PT Sarimelati go up and down completely randomly.
Pair Corralation between Bank Central and PT Sarimelati
Assuming the 90 days trading horizon Bank Central Asia is expected to under-perform the PT Sarimelati. But the stock apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 1.34 times less risky than PT Sarimelati. The stock trades about -0.05 of its potential returns per unit of risk. The PT Sarimelati Kencana is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 15,500 in PT Sarimelati Kencana on November 27, 2024 and sell it today you would earn a total of 1,000.00 from holding PT Sarimelati Kencana or generate 6.45% 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 Sarimelati Kencana
Performance |
| Timeline |
| Bank Central Asia |
| PT Sarimelati Kencana |
Bank Central and PT Sarimelati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and PT Sarimelati
The main advantage of trading using opposite Bank Central and PT Sarimelati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, PT Sarimelati 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 Sarimelati will offset losses from the drop in PT Sarimelati'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 Sarimelati vs. Fast Food Indonesia | PT Sarimelati vs. Medikaloka Hermina PT | PT Sarimelati vs. Prodia Widyahusada Tbk | PT Sarimelati vs. MAP Aktif Adiperkasa |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |