Correlation Between Bank Yudha and Bank Mnc
Can any of the company-specific risk be diversified away by investing in both Bank Yudha and Bank Mnc 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 Yudha and Bank Mnc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Yudha Bhakti and Bank Mnc Internasional, you can compare the effects of market volatilities on Bank Yudha and Bank Mnc 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 Yudha with a short position of Bank Mnc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Yudha and Bank Mnc.
Diversification Opportunities for Bank Yudha and Bank Mnc
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Bank is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank Yudha Bhakti and Bank Mnc Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mnc Internasional and Bank Yudha 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 Yudha Bhakti are associated (or correlated) with Bank Mnc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mnc Internasional has no effect on the direction of Bank Yudha i.e., Bank Yudha and Bank Mnc go up and down completely randomly.
Pair Corralation between Bank Yudha and Bank Mnc
Assuming the 90 days trading horizon Bank Yudha Bhakti is expected to generate 1.13 times more return on investment than Bank Mnc. However, Bank Yudha is 1.13 times more volatile than Bank Mnc Internasional. It trades about 0.02 of its potential returns per unit of risk. Bank Mnc Internasional is currently generating about -0.17 per unit of risk. If you would invest 27,400 in Bank Yudha Bhakti on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Bank Yudha Bhakti or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Yudha Bhakti vs. Bank Mnc Internasional
Performance |
| Timeline |
| Bank Yudha Bhakti |
| Bank Mnc Internasional |
Bank Yudha and Bank Mnc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Yudha and Bank Mnc
The main advantage of trading using opposite Bank Yudha and Bank Mnc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Yudha position performs unexpectedly, Bank Mnc 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 Mnc will offset losses from the drop in Bank Mnc's long position.| Bank Yudha vs. Paninvest Tbk | Bank Yudha vs. Maskapai Reasuransi Indonesia | Bank Yudha vs. Panin Sekuritas Tbk | Bank Yudha vs. Wahana Ottomitra Multiartha |
| Bank Mnc vs. Paninvest Tbk | Bank Mnc vs. Maskapai Reasuransi Indonesia | Bank Mnc vs. Panin Sekuritas Tbk | Bank Mnc vs. Wahana Ottomitra Multiartha |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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