Correlation Between Bank Negara and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both Bank Negara and Mitrabahtera Segara 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 Mitrabahtera Segara 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 Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on Bank Negara and Mitrabahtera Segara 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 Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Mitrabahtera Segara.
Diversification Opportunities for Bank Negara and Mitrabahtera Segara
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Mitrabahtera is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara 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 Mitrabahtera Segara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabahtera Segara has no effect on the direction of Bank Negara i.e., Bank Negara and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between Bank Negara and Mitrabahtera Segara
Assuming the 90 days trading horizon Bank Negara Indonesia is expected to under-perform the Mitrabahtera Segara. But the stock apears to be less risky and, when comparing its historical volatility, Bank Negara Indonesia is 1.1 times less risky than Mitrabahtera Segara. The stock trades about -0.06 of its potential returns per unit of risk. The Mitrabahtera Segara Sejati is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 102,500 in Mitrabahtera Segara Sejati on November 2, 2024 and sell it today you would earn a total of 500.00 from holding Mitrabahtera Segara Sejati or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.0% |
| Values | Daily Returns |
Bank Negara Indonesia vs. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| Bank Negara Indonesia |
| Mitrabahtera Segara |
Bank Negara and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Negara and Mitrabahtera Segara
The main advantage of trading using opposite Bank Negara and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, Mitrabahtera Segara 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 Mitrabahtera Segara will offset losses from the drop in Mitrabahtera Segara's 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 |
| Mitrabahtera Segara vs. Petrosea Tbk | Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |