Correlation Between Bank Pembangunan and Dana Brata
Can any of the company-specific risk be diversified away by investing in both Bank Pembangunan and Dana Brata 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 Dana Brata 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 Dana Brata Luhur, you can compare the effects of market volatilities on Bank Pembangunan and Dana Brata 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 Dana Brata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Pembangunan and Dana Brata.
Diversification Opportunities for Bank Pembangunan and Dana Brata
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Dana is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bank Pembangunan Daerah and Dana Brata Luhur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Brata Luhur 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 Dana Brata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Brata Luhur has no effect on the direction of Bank Pembangunan i.e., Bank Pembangunan and Dana Brata go up and down completely randomly.
Pair Corralation between Bank Pembangunan and Dana Brata
Assuming the 90 days trading horizon Bank Pembangunan Daerah is expected to generate 0.42 times more return on investment than Dana Brata. However, Bank Pembangunan Daerah is 2.37 times less risky than Dana Brata. It trades about -0.07 of its potential returns per unit of risk. Dana Brata Luhur is currently generating about -0.03 per unit of risk. If you would invest 2,300 in Bank Pembangunan Daerah on January 14, 2025 and sell it today you would lose (100.00) from holding Bank Pembangunan Daerah or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.33% |
| Values | Daily Returns |
Bank Pembangunan Daerah vs. Dana Brata Luhur
Performance |
| Timeline |
| Bank Pembangunan Daerah |
| Dana Brata Luhur |
Bank Pembangunan and Dana Brata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Pembangunan and Dana Brata
The main advantage of trading using opposite Bank Pembangunan and Dana Brata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Pembangunan position performs unexpectedly, Dana Brata 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 Dana Brata will offset losses from the drop in Dana Brata's long position.| Bank Pembangunan vs. Lippo General Insurance | Bank Pembangunan vs. Integra Indocabinet Tbk | Bank Pembangunan vs. PT MNC Energy | Bank Pembangunan vs. J Resources Asia |
| Dana Brata vs. Pelita Samudera Shipping | Dana Brata vs. Trans Power Marine | Dana Brata vs. Kencana Energi Lestari | Dana Brata vs. Pelayaran Nelly Dwi |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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