Correlation Between Bank Ina and Karya Bersama
Can any of the company-specific risk be diversified away by investing in both Bank Ina and Karya Bersama 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 Karya Bersama 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 Karya Bersama Anugerah, you can compare the effects of market volatilities on Bank Ina and Karya Bersama 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 Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ina and Karya Bersama.
Diversification Opportunities for Bank Ina and Karya Bersama
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Karya is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ina Perdana and Karya Bersama Anugerah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karya Bersama Anugerah 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 Karya Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karya Bersama Anugerah has no effect on the direction of Bank Ina i.e., Bank Ina and Karya Bersama go up and down completely randomly.
Pair Corralation between Bank Ina and Karya Bersama
Assuming the 90 days trading horizon Bank Ina Perdana is expected to under-perform the Karya Bersama. But the stock apears to be less risky and, when comparing its historical volatility, Bank Ina Perdana is 8.66 times less risky than Karya Bersama. The stock trades about -0.13 of its potential returns per unit of risk. The Karya Bersama Anugerah is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Karya Bersama Anugerah on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Karya Bersama Anugerah or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Ina Perdana vs. Karya Bersama Anugerah
Performance |
| Timeline |
| Bank Ina Perdana |
| Karya Bersama Anugerah |
Bank Ina and Karya Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ina and Karya Bersama
The main advantage of trading using opposite Bank Ina and Karya Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ina position performs unexpectedly, Karya Bersama 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 Karya Bersama will offset losses from the drop in Karya Bersama'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 |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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