Correlation Between Bank Ina and Bank Maspion
Can any of the company-specific risk be diversified away by investing in both Bank Ina and Bank Maspion 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 Bank Maspion 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 Bank Maspion Indonesia, you can compare the effects of market volatilities on Bank Ina and Bank Maspion 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 Bank Maspion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ina and Bank Maspion.
Diversification Opportunities for Bank Ina and Bank Maspion
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Bank is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ina Perdana and Bank Maspion Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Maspion Indonesia 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 Bank Maspion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Maspion Indonesia has no effect on the direction of Bank Ina i.e., Bank Ina and Bank Maspion go up and down completely randomly.
Pair Corralation between Bank Ina and Bank Maspion
Assuming the 90 days trading horizon Bank Ina Perdana is expected to generate 0.13 times more return on investment than Bank Maspion. However, Bank Ina Perdana is 7.48 times less risky than Bank Maspion. It trades about 0.03 of its potential returns per unit of risk. Bank Maspion Indonesia is currently generating about -0.42 per unit of risk. If you would invest 413,000 in Bank Ina Perdana on September 1, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Ina Perdana vs. Bank Maspion Indonesia
Performance |
| Timeline |
| Bank Ina Perdana |
| Bank Maspion Indonesia |
Bank Ina and Bank Maspion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ina and Bank Maspion
The main advantage of trading using opposite Bank Ina and Bank Maspion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ina position performs unexpectedly, Bank Maspion 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 Maspion will offset losses from the drop in Bank Maspion'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 |
| Bank Maspion vs. Bank BRISyariah Tbk | Bank Maspion vs. Ace Hardware Indonesia | Bank Maspion vs. Merdeka Copper Gold | Bank Maspion vs. Mitra Pinasthika Mustika |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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