Correlation Between Bank Bukopin and Sona Topas
Can any of the company-specific risk be diversified away by investing in both Bank Bukopin and Sona Topas 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 Sona Topas 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 Sona Topas Tourism, you can compare the effects of market volatilities on Bank Bukopin and Sona Topas 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 Sona Topas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Bukopin and Sona Topas.
Diversification Opportunities for Bank Bukopin and Sona Topas
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Sona is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank Bukopin Tbk and Sona Topas Tourism in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sona Topas Tourism 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 Sona Topas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sona Topas Tourism has no effect on the direction of Bank Bukopin i.e., Bank Bukopin and Sona Topas go up and down completely randomly.
Pair Corralation between Bank Bukopin and Sona Topas
Assuming the 90 days trading horizon Bank Bukopin Tbk is expected to under-perform the Sona Topas. But the stock apears to be less risky and, when comparing its historical volatility, Bank Bukopin Tbk is 14.66 times less risky than Sona Topas. The stock trades about -0.06 of its potential returns per unit of risk. The Sona Topas Tourism is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 155,000 in Sona Topas Tourism on August 31, 2024 and sell it today you would earn a total of 585,000 from holding Sona Topas Tourism or generate 377.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Bukopin Tbk vs. Sona Topas Tourism
Performance |
| Timeline |
| Bank Bukopin Tbk |
| Sona Topas Tourism |
Bank Bukopin and Sona Topas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Bukopin and Sona Topas
The main advantage of trading using opposite Bank Bukopin and Sona Topas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Bukopin position performs unexpectedly, Sona Topas 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 Sona Topas will offset losses from the drop in Sona Topas' 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 |
| Sona Topas vs. Japfa Comfeed Indonesia | Sona Topas vs. Charoen Pokphand Indonesia | Sona Topas vs. Erajaya Swasembada Tbk | Sona Topas vs. Indofood Cbp Sukses |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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