Correlation Between Bank Pembangunan and Bank Ganesha
Can any of the company-specific risk be diversified away by investing in both Bank Pembangunan and Bank Ganesha 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 Pembangunan and Bank Ganesha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Pembangunan Daerah and Bank Ganesha Tbk, you can compare the effects of market volatilities on Bank Pembangunan and Bank Ganesha 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 Pembangunan with a short position of Bank Ganesha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Pembangunan and Bank Ganesha.
Diversification Opportunities for Bank Pembangunan and Bank Ganesha
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Bank is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Pembangunan Daerah and Bank Ganesha Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ganesha Tbk and Bank Pembangunan 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 Pembangunan Daerah are associated (or correlated) with Bank Ganesha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ganesha Tbk has no effect on the direction of Bank Pembangunan i.e., Bank Pembangunan and Bank Ganesha go up and down completely randomly.
Pair Corralation between Bank Pembangunan and Bank Ganesha
Assuming the 90 days trading horizon Bank Pembangunan Daerah is expected to under-perform the Bank Ganesha. In addition to that, Bank Pembangunan is 1.2 times more volatile than Bank Ganesha Tbk. It trades about -0.02 of its total potential returns per unit of risk. Bank Ganesha Tbk is currently generating about 0.0 per unit of volatility. If you would invest 8,400 in Bank Ganesha Tbk on November 19, 2024 and sell it today you would lose (1,600) from holding Bank Ganesha Tbk or give up 19.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Pembangunan Daerah vs. Bank Ganesha Tbk
Performance |
| Timeline |
| Bank Pembangunan Daerah |
| Bank Ganesha Tbk |
Bank Pembangunan and Bank Ganesha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Pembangunan and Bank Ganesha
The main advantage of trading using opposite Bank Pembangunan and Bank Ganesha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Pembangunan position performs unexpectedly, Bank Ganesha 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 Bank Ganesha will offset losses from the drop in Bank Ganesha's long position.| Bank Pembangunan vs. Bank Mnc Internasional | Bank Pembangunan vs. Bank Qnb Indonesia | Bank Pembangunan vs. Bank Victoria International | Bank Pembangunan vs. Bank Rakyat Indonesia |
| Bank Ganesha vs. Bk Harda Internasional | Bank Ganesha vs. Bank Yudha Bhakti | Bank Ganesha vs. Bank Mnc Internasional | Bank Ganesha vs. Bank Capital 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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