Correlation Between Bank Negara and Autopedia Sukses
Can any of the company-specific risk be diversified away by investing in both Bank Negara and Autopedia Sukses 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 Negara and Autopedia Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Negara Indonesia and Autopedia Sukses Lestari, you can compare the effects of market volatilities on Bank Negara and Autopedia Sukses 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 Negara with a short position of Autopedia Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Autopedia Sukses.
Diversification Opportunities for Bank Negara and Autopedia Sukses
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Autopedia is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Autopedia Sukses Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopedia Sukses Lestari and Bank Negara 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 Negara Indonesia are associated (or correlated) with Autopedia Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopedia Sukses Lestari has no effect on the direction of Bank Negara i.e., Bank Negara and Autopedia Sukses go up and down completely randomly.
Pair Corralation between Bank Negara and Autopedia Sukses
Assuming the 90 days trading horizon Bank Negara Indonesia is expected to generate 1.12 times more return on investment than Autopedia Sukses. However, Bank Negara is 1.12 times more volatile than Autopedia Sukses Lestari. It trades about -0.38 of its potential returns per unit of risk. Autopedia Sukses Lestari is currently generating about -0.52 per unit of risk. If you would invest 550,000 in Bank Negara Indonesia on August 27, 2024 and sell it today you would lose (66,000) from holding Bank Negara Indonesia or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Negara Indonesia vs. Autopedia Sukses Lestari
Performance |
| Timeline |
| Bank Negara Indonesia |
| Autopedia Sukses Lestari |
Bank Negara and Autopedia Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Negara and Autopedia Sukses
The main advantage of trading using opposite Bank Negara and Autopedia Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, Autopedia Sukses 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 Autopedia Sukses will offset losses from the drop in Autopedia Sukses' long position.| Bank Negara vs. Bank Mandiri Persero | Bank Negara vs. Bank Rakyat Indonesia | Bank Negara vs. Bank Central Asia | Bank Negara vs. Astra International Tbk |
| Autopedia Sukses vs. Adaro Minerals Indonesia | Autopedia Sukses vs. Dharma Polimetal Tbk | Autopedia Sukses vs. Wir Asia Tbk | Autopedia Sukses vs. Adi Sarana Armada |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |