Correlation Between Bk Harda and Bank Yudha
Can any of the company-specific risk be diversified away by investing in both Bk Harda and Bank Yudha 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 Bk Harda and Bank Yudha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bk Harda Internasional and Bank Yudha Bhakti, you can compare the effects of market volatilities on Bk Harda and Bank Yudha 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 Bk Harda with a short position of Bank Yudha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bk Harda and Bank Yudha.
Diversification Opportunities for Bk Harda and Bank Yudha
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BBHI and Bank is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bk Harda Internasional and Bank Yudha Bhakti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Yudha Bhakti and Bk Harda 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 Bk Harda Internasional are associated (or correlated) with Bank Yudha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Yudha Bhakti has no effect on the direction of Bk Harda i.e., Bk Harda and Bank Yudha go up and down completely randomly.
Pair Corralation between Bk Harda and Bank Yudha
Assuming the 90 days trading horizon Bk Harda Internasional is expected to generate 4.38 times more return on investment than Bank Yudha. However, Bk Harda is 4.38 times more volatile than Bank Yudha Bhakti. It trades about -0.02 of its potential returns per unit of risk. Bank Yudha Bhakti is currently generating about -0.15 per unit of risk. If you would invest 74,500 in Bk Harda Internasional on November 3, 2024 and sell it today you would lose (7,500) from holding Bk Harda Internasional or give up 10.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bk Harda Internasional vs. Bank Yudha Bhakti
Performance |
| Timeline |
| Bk Harda Internasional |
| Bank Yudha Bhakti |
Bk Harda and Bank Yudha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bk Harda and Bank Yudha
The main advantage of trading using opposite Bk Harda and Bank Yudha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bk Harda position performs unexpectedly, Bank Yudha 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 Bank Yudha will offset losses from the drop in Bank Yudha's long position.| Bk Harda vs. Bank Artos Indonesia | Bk Harda vs. Bank Yudha Bhakti | Bk Harda vs. Bank Ganesha Tbk | Bk Harda vs. Bank Rakyat Indonesia |
| Bank Yudha vs. Bank Artos Indonesia | Bank Yudha vs. Bk Harda Internasional | Bank Yudha vs. Bank Rakyat Indonesia | Bank Yudha vs. Bank Mnc Internasional |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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