Correlation Between Bank Tabungan and Bank Artos
Can any of the company-specific risk be diversified away by investing in both Bank Tabungan and Bank Artos 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 Tabungan and Bank Artos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Tabungan Negara and Bank Artos Indonesia, you can compare the effects of market volatilities on Bank Tabungan and Bank Artos 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 Tabungan with a short position of Bank Artos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Tabungan and Bank Artos.
Diversification Opportunities for Bank Tabungan and Bank Artos
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Bank is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bank Tabungan Negara and Bank Artos Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Artos Indonesia and Bank Tabungan 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 Tabungan Negara are associated (or correlated) with Bank Artos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Artos Indonesia has no effect on the direction of Bank Tabungan i.e., Bank Tabungan and Bank Artos go up and down completely randomly.
Pair Corralation between Bank Tabungan and Bank Artos
Assuming the 90 days trading horizon Bank Tabungan Negara is expected to under-perform the Bank Artos. But the stock apears to be less risky and, when comparing its historical volatility, Bank Tabungan Negara is 2.0 times less risky than Bank Artos. The stock trades about -0.02 of its potential returns per unit of risk. The Bank Artos Indonesia is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 256,000 in Bank Artos Indonesia on November 27, 2024 and sell it today you would lose (60,500) from holding Bank Artos Indonesia or give up 23.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Tabungan Negara vs. Bank Artos Indonesia
Performance |
| Timeline |
| Bank Tabungan Negara |
| Bank Artos Indonesia |
Bank Tabungan and Bank Artos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Tabungan and Bank Artos
The main advantage of trading using opposite Bank Tabungan and Bank Artos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Tabungan position performs unexpectedly, Bank Artos 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 Artos will offset losses from the drop in Bank Artos' long position.| Bank Tabungan vs. Bank Negara Indonesia | Bank Tabungan vs. Bank Mandiri Persero | Bank Tabungan vs. Bank Jabar | Bank Tabungan vs. Jasa Marga Tbk |
| Bank Artos vs. Elang Mahkota Teknologi | Bank Artos vs. Bank Yudha Bhakti | Bank Artos vs. Bk Harda Internasional | Bank Artos vs. PT Bukalapak |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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