Correlation Between Bank Ganesha and Bank Windu
Can any of the company-specific risk be diversified away by investing in both Bank Ganesha and Bank Windu 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 Ganesha and Bank Windu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Ganesha Tbk and Bank Windu Kentjana, you can compare the effects of market volatilities on Bank Ganesha and Bank Windu 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 Ganesha with a short position of Bank Windu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ganesha and Bank Windu.
Diversification Opportunities for Bank Ganesha and Bank Windu
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Bank is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ganesha Tbk and Bank Windu Kentjana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Windu Kentjana and Bank Ganesha 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 Ganesha Tbk are associated (or correlated) with Bank Windu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Windu Kentjana has no effect on the direction of Bank Ganesha i.e., Bank Ganesha and Bank Windu go up and down completely randomly.
Pair Corralation between Bank Ganesha and Bank Windu
Assuming the 90 days trading horizon Bank Ganesha Tbk is expected to under-perform the Bank Windu. But the stock apears to be less risky and, when comparing its historical volatility, Bank Ganesha Tbk is 1.33 times less risky than Bank Windu. The stock trades about -0.1 of its potential returns per unit of risk. The Bank Windu Kentjana is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 8,300 in Bank Windu Kentjana on August 25, 2024 and sell it today you would lose (300.00) from holding Bank Windu Kentjana or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Ganesha Tbk vs. Bank Windu Kentjana
Performance |
| Timeline |
| Bank Ganesha Tbk |
| Bank Windu Kentjana |
Bank Ganesha and Bank Windu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ganesha and Bank Windu
The main advantage of trading using opposite Bank Ganesha and Bank Windu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ganesha position performs unexpectedly, Bank Windu 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 Windu will offset losses from the drop in Bank Windu's long position.| Bank Ganesha vs. Bk Harda Internasional | Bank Ganesha vs. Bank Yudha Bhakti | Bank Ganesha vs. Bank Mnc Internasional | Bank Ganesha vs. Bank Capital Indonesia |
| Bank Windu vs. Paninvest Tbk | Bank Windu vs. Maskapai Reasuransi Indonesia | Bank Windu vs. Panin Sekuritas Tbk | Bank Windu vs. Wahana Ottomitra Multiartha |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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