Correlation Between Bank Bukopin and Clipan Finance
Can any of the company-specific risk be diversified away by investing in both Bank Bukopin and Clipan Finance 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 Bukopin and Clipan Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Bukopin Tbk and Clipan Finance Indonesia, you can compare the effects of market volatilities on Bank Bukopin and Clipan Finance 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 Bukopin with a short position of Clipan Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Bukopin and Clipan Finance.
Diversification Opportunities for Bank Bukopin and Clipan Finance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Clipan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bank Bukopin Tbk and Clipan Finance Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clipan Finance Indonesia and Bank Bukopin 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 Bukopin Tbk are associated (or correlated) with Clipan Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clipan Finance Indonesia has no effect on the direction of Bank Bukopin i.e., Bank Bukopin and Clipan Finance go up and down completely randomly.
Pair Corralation between Bank Bukopin and Clipan Finance
Assuming the 90 days trading horizon Bank Bukopin Tbk is expected to generate 0.89 times more return on investment than Clipan Finance. However, Bank Bukopin Tbk is 1.12 times less risky than Clipan Finance. It trades about -0.09 of its potential returns per unit of risk. Clipan Finance Indonesia is currently generating about -0.16 per unit of risk. If you would invest 6,000 in Bank Bukopin Tbk on October 26, 2024 and sell it today you would lose (600.00) from holding Bank Bukopin Tbk or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Bukopin Tbk vs. Clipan Finance Indonesia
Performance |
| Timeline |
| Bank Bukopin Tbk |
| Clipan Finance Indonesia |
Bank Bukopin and Clipan Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Bukopin and Clipan Finance
The main advantage of trading using opposite Bank Bukopin and Clipan Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Bukopin position performs unexpectedly, Clipan Finance 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 Clipan Finance will offset losses from the drop in Clipan Finance's long position.| Bank Bukopin vs. Bank Danamon Indonesia | Bank Bukopin vs. Bank Cimb Niaga | Bank Bukopin vs. Bank Tabungan Negara | Bank Bukopin vs. Bank Jabar |
| Clipan Finance vs. BFI Finance Indonesia | Clipan Finance vs. Adira Dinamika Multi | Clipan Finance vs. Paninvest Tbk | Clipan Finance vs. Panin Financial Tbk |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |