Correlation Between Bank Yudha and Cahayaputra Asa
Can any of the company-specific risk be diversified away by investing in both Bank Yudha and Cahayaputra Asa 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 Cahayaputra Asa 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 Cahayaputra Asa Keramik, you can compare the effects of market volatilities on Bank Yudha and Cahayaputra Asa 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 Cahayaputra Asa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Yudha and Cahayaputra Asa.
Diversification Opportunities for Bank Yudha and Cahayaputra Asa
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Cahayaputra is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bank Yudha Bhakti and Cahayaputra Asa Keramik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cahayaputra Asa Keramik 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 Cahayaputra Asa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cahayaputra Asa Keramik has no effect on the direction of Bank Yudha i.e., Bank Yudha and Cahayaputra Asa go up and down completely randomly.
Pair Corralation between Bank Yudha and Cahayaputra Asa
Assuming the 90 days trading horizon Bank Yudha Bhakti is expected to generate 1.15 times more return on investment than Cahayaputra Asa. However, Bank Yudha is 1.15 times more volatile than Cahayaputra Asa Keramik. It trades about 0.08 of its potential returns per unit of risk. Cahayaputra Asa Keramik is currently generating about -0.03 per unit of risk. If you would invest 26,200 in Bank Yudha Bhakti on August 26, 2024 and sell it today you would earn a total of 1,200 from holding Bank Yudha Bhakti or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Yudha Bhakti vs. Cahayaputra Asa Keramik
Performance |
| Timeline |
| Bank Yudha Bhakti |
| Cahayaputra Asa Keramik |
Bank Yudha and Cahayaputra Asa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Yudha and Cahayaputra Asa
The main advantage of trading using opposite Bank Yudha and Cahayaputra Asa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Yudha position performs unexpectedly, Cahayaputra Asa 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 Cahayaputra Asa will offset losses from the drop in Cahayaputra Asa'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 |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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