Correlation Between Bank Yudha and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Bank Yudha and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Bank Yudha and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Yudha and Dow Jones.
Diversification Opportunities for Bank Yudha and Dow Jones
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Dow is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bank Yudha Bhakti and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Bank Yudha i.e., Bank Yudha and Dow Jones go up and down completely randomly.
Pair Corralation between Bank Yudha and Dow Jones
Assuming the 90 days trading horizon Bank Yudha Bhakti is expected to under-perform the Dow Jones. In addition to that, Bank Yudha is 2.86 times more volatile than Dow Jones Industrial. It trades about -0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of volatility. If you would invest 4,290,695 in Dow Jones Industrial on October 22, 2024 and sell it today you would earn a total of 58,088 from holding Dow Jones Industrial or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Bank Yudha Bhakti vs. Dow Jones Industrial
Performance |
| Timeline |
Bank Yudha and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bank Yudha Bhakti
Pair trading matchups for Bank Yudha
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bank Yudha and Dow Jones
The main advantage of trading using opposite Bank Yudha and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Yudha position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Nasdaq Inc | Dow Jones vs. Summit Materials | Dow Jones vs. Vulcan Materials | Dow Jones vs. Celsius Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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