Correlation Between Bank Ina and Bk Harda
Can any of the company-specific risk be diversified away by investing in both Bank Ina and Bk Harda 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 Ina and Bk Harda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Ina Perdana and Bk Harda Internasional, you can compare the effects of market volatilities on Bank Ina and Bk Harda 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 Ina with a short position of Bk Harda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ina and Bk Harda.
Diversification Opportunities for Bank Ina and Bk Harda
Good diversification
The 3 months correlation between Bank and BBHI is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ina Perdana and Bk Harda Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bk Harda Internasional and Bank Ina 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 Ina Perdana are associated (or correlated) with Bk Harda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bk Harda Internasional has no effect on the direction of Bank Ina i.e., Bank Ina and Bk Harda go up and down completely randomly.
Pair Corralation between Bank Ina and Bk Harda
Assuming the 90 days trading horizon Bank Ina Perdana is expected to generate 0.11 times more return on investment than Bk Harda. However, Bank Ina Perdana is 9.2 times less risky than Bk Harda. It trades about 0.03 of its potential returns per unit of risk. Bk Harda Internasional is currently generating about -0.11 per unit of risk. If you would invest 409,000 in Bank Ina Perdana on August 29, 2024 and sell it today you would earn a total of 1,000.00 from holding Bank Ina Perdana or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Ina Perdana vs. Bk Harda Internasional
Performance |
| Timeline |
| Bank Ina Perdana |
| Bk Harda Internasional |
Bank Ina and Bk Harda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ina and Bk Harda
The main advantage of trading using opposite Bank Ina and Bk Harda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ina position performs unexpectedly, Bk Harda 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 Bk Harda will offset losses from the drop in Bk Harda's long position.| Bank Ina vs. Bk Harda Internasional | Bank Ina vs. Bank Yudha Bhakti | Bank Ina vs. Bank Sinarmas Tbk | Bank Ina vs. Bank Maspion Indonesia |
| Bk Harda vs. Bank Artos Indonesia | Bk Harda vs. Bank Yudha Bhakti | Bk Harda vs. Bank Ganesha Tbk | Bk Harda vs. Bank Rakyat 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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