Correlation Between Bank Yudha and HK Metals
Can any of the company-specific risk be diversified away by investing in both Bank Yudha and HK Metals 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 HK Metals 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 HK Metals Utama, you can compare the effects of market volatilities on Bank Yudha and HK Metals 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 HK Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Yudha and HK Metals.
Diversification Opportunities for Bank Yudha and HK Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and HKMU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Yudha Bhakti and HK Metals Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Metals Utama 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 HK Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Metals Utama has no effect on the direction of Bank Yudha i.e., Bank Yudha and HK Metals go up and down completely randomly.
Pair Corralation between Bank Yudha and HK Metals
If you would invest 26,000 in Bank Yudha Bhakti on August 30, 2024 and sell it today you would earn a total of 1,200 from holding Bank Yudha Bhakti or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Yudha Bhakti vs. HK Metals Utama
Performance |
| Timeline |
| Bank Yudha Bhakti |
| HK Metals Utama |
Bank Yudha and HK Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Yudha and HK Metals
The main advantage of trading using opposite Bank Yudha and HK Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Yudha position performs unexpectedly, HK Metals 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 HK Metals will offset losses from the drop in HK Metals' long position.| Bank Yudha vs. Bank Cimb Niaga | Bank Yudha vs. Indosat Tbk | Bank Yudha vs. Astra Agro Lestari | Bank Yudha vs. Indocement Tunggal Prakarsa |
| HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. Buyung Poetra Sembada | HK Metals vs. J Resources Asia |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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