Correlation Between Bank Ina and Wijaya Karya
Can any of the company-specific risk be diversified away by investing in both Bank Ina and Wijaya Karya 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 Wijaya Karya 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 Wijaya Karya Bangunan, you can compare the effects of market volatilities on Bank Ina and Wijaya Karya 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 Wijaya Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ina and Wijaya Karya.
Diversification Opportunities for Bank Ina and Wijaya Karya
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Wijaya is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ina Perdana and Wijaya Karya Bangunan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wijaya Karya Bangunan 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 Wijaya Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wijaya Karya Bangunan has no effect on the direction of Bank Ina i.e., Bank Ina and Wijaya Karya go up and down completely randomly.
Pair Corralation between Bank Ina and Wijaya Karya
Assuming the 90 days trading horizon Bank Ina Perdana is expected to generate 0.34 times more return on investment than Wijaya Karya. However, Bank Ina Perdana is 2.98 times less risky than Wijaya Karya. It trades about -0.05 of its potential returns per unit of risk. Wijaya Karya Bangunan is currently generating about -0.46 per unit of risk. If you would invest 410,000 in Bank Ina Perdana on September 19, 2024 and sell it today you would lose (2,000) from holding Bank Ina Perdana or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Ina Perdana vs. Wijaya Karya Bangunan
Performance |
| Timeline |
| Bank Ina Perdana |
| Wijaya Karya Bangunan |
Bank Ina and Wijaya Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ina and Wijaya Karya
The main advantage of trading using opposite Bank Ina and Wijaya Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ina position performs unexpectedly, Wijaya Karya 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 Wijaya Karya will offset losses from the drop in Wijaya Karya'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 |
| Wijaya Karya vs. Wijaya Karya Beton | Wijaya Karya vs. Waskita Beton Precast | Wijaya Karya vs. Pembangunan Perumahan PT | Wijaya Karya vs. Puradelta Lestari PT |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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