Correlation Between Bank Yudha and PT Bank
Can any of the company-specific risk be diversified away by investing in both Bank Yudha and PT Bank 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 PT Bank 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 PT Bank Bisnis, you can compare the effects of market volatilities on Bank Yudha and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Yudha and PT Bank.
Diversification Opportunities for Bank Yudha and PT Bank
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and BBSI is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bank Yudha Bhakti and PT Bank Bisnis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Bisnis 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Bisnis has no effect on the direction of Bank Yudha i.e., Bank Yudha and PT Bank go up and down completely randomly.
Pair Corralation between Bank Yudha and PT Bank
Assuming the 90 days trading horizon Bank Yudha Bhakti is expected to generate 3.91 times more return on investment than PT Bank. However, Bank Yudha is 3.91 times more volatile than PT Bank Bisnis. It trades about 0.01 of its potential returns per unit of risk. PT Bank Bisnis is currently generating about -0.04 per unit of risk. If you would invest 26,600 in Bank Yudha Bhakti on September 1, 2024 and sell it today you would lose (600.00) from holding Bank Yudha Bhakti or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Yudha Bhakti vs. PT Bank Bisnis
Performance |
| Timeline |
| Bank Yudha Bhakti |
| PT Bank Bisnis |
Bank Yudha and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Yudha and PT Bank
The main advantage of trading using opposite Bank Yudha and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Yudha position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| Bank Yudha vs. Bank Artos Indonesia | Bank Yudha vs. Bk Harda Internasional | Bank Yudha vs. Bank Rakyat Indonesia | Bank Yudha vs. Bank Mnc Internasional |
| PT Bank vs. Bk Harda Internasional | PT Bank vs. Bank Yudha Bhakti | PT Bank vs. Bank Net Indonesia | PT Bank vs. Bank Amar 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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