Correlation Between Bank Mestika and Bank Maspion
Can any of the company-specific risk be diversified away by investing in both Bank Mestika and Bank Maspion 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 Mestika and Bank Maspion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mestika Dharma and Bank Maspion Indonesia, you can compare the effects of market volatilities on Bank Mestika and Bank Maspion 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 Mestika with a short position of Bank Maspion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mestika and Bank Maspion.
Diversification Opportunities for Bank Mestika and Bank Maspion
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Bank is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mestika Dharma and Bank Maspion Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Maspion Indonesia and Bank Mestika 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 Mestika Dharma are associated (or correlated) with Bank Maspion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Maspion Indonesia has no effect on the direction of Bank Mestika i.e., Bank Mestika and Bank Maspion go up and down completely randomly.
Pair Corralation between Bank Mestika and Bank Maspion
Assuming the 90 days trading horizon Bank Mestika Dharma is expected to under-perform the Bank Maspion. In addition to that, Bank Mestika is 1.54 times more volatile than Bank Maspion Indonesia. It trades about -0.32 of its total potential returns per unit of risk. Bank Maspion Indonesia is currently generating about -0.42 per unit of volatility. If you would invest 58,000 in Bank Maspion Indonesia on November 3, 2024 and sell it today you would lose (5,000) from holding Bank Maspion Indonesia or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mestika Dharma vs. Bank Maspion Indonesia
Performance |
| Timeline |
| Bank Mestika Dharma |
| Bank Maspion Indonesia |
Bank Mestika and Bank Maspion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mestika and Bank Maspion
The main advantage of trading using opposite Bank Mestika and Bank Maspion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mestika position performs unexpectedly, Bank Maspion 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 Maspion will offset losses from the drop in Bank Maspion's long position.| Bank Mestika vs. Bank Maspion Indonesia | Bank Mestika vs. Bank Sinarmas Tbk | Bank Mestika vs. Bank Ina Perdana | Bank Mestika vs. Bank Bumi Arta |
| Bank Maspion vs. Bank Mestika Dharma | Bank Maspion vs. Bank Sinarmas Tbk | Bank Maspion vs. Bank Ina Perdana | Bank Maspion vs. Bank Qnb Indonesia |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |