Correlation Between Bank Yudha and Global Sukses
Can any of the company-specific risk be diversified away by investing in both Bank Yudha and Global Sukses 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 Global Sukses 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 Global Sukses Solusi, you can compare the effects of market volatilities on Bank Yudha and Global Sukses 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 Global Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Yudha and Global Sukses.
Diversification Opportunities for Bank Yudha and Global Sukses
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Global is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank Yudha Bhakti and Global Sukses Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Sukses Solusi 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 Global Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Sukses Solusi has no effect on the direction of Bank Yudha i.e., Bank Yudha and Global Sukses go up and down completely randomly.
Pair Corralation between Bank Yudha and Global Sukses
Assuming the 90 days trading horizon Bank Yudha Bhakti is expected to under-perform the Global Sukses. In addition to that, Bank Yudha is 1.11 times more volatile than Global Sukses Solusi. It trades about -0.04 of its total potential returns per unit of risk. Global Sukses Solusi is currently generating about -0.03 per unit of volatility. If you would invest 13,977 in Global Sukses Solusi on November 19, 2024 and sell it today you would lose (8,277) from holding Global Sukses Solusi or give up 59.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Yudha Bhakti vs. Global Sukses Solusi
Performance |
| Timeline |
| Bank Yudha Bhakti |
| Global Sukses Solusi |
Bank Yudha and Global Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Yudha and Global Sukses
The main advantage of trading using opposite Bank Yudha and Global Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Yudha position performs unexpectedly, Global Sukses 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 Global Sukses will offset losses from the drop in Global Sukses' 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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