Correlation Between Bank Maspion and Bank Qnb
Can any of the company-specific risk be diversified away by investing in both Bank Maspion and Bank Qnb 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 Maspion and Bank Qnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Maspion Indonesia and Bank Qnb Indonesia, you can compare the effects of market volatilities on Bank Maspion and Bank Qnb 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 Maspion with a short position of Bank Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Maspion and Bank Qnb.
Diversification Opportunities for Bank Maspion and Bank Qnb
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Bank is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bank Maspion Indonesia and Bank Qnb Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Qnb Indonesia and Bank Maspion 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 Maspion Indonesia are associated (or correlated) with Bank Qnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Qnb Indonesia has no effect on the direction of Bank Maspion i.e., Bank Maspion and Bank Qnb go up and down completely randomly.
Pair Corralation between Bank Maspion and Bank Qnb
Assuming the 90 days trading horizon Bank Maspion Indonesia is expected to under-perform the Bank Qnb. But the stock apears to be less risky and, when comparing its historical volatility, Bank Maspion Indonesia is 3.38 times less risky than Bank Qnb. The stock trades about -0.42 of its potential returns per unit of risk. The Bank Qnb Indonesia is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,900 in Bank Qnb Indonesia on September 1, 2024 and sell it today you would lose (300.00) from holding Bank Qnb Indonesia or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Maspion Indonesia vs. Bank Qnb Indonesia
Performance |
| Timeline |
| Bank Maspion Indonesia |
| Bank Qnb Indonesia |
Bank Maspion and Bank Qnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Maspion and Bank Qnb
The main advantage of trading using opposite Bank Maspion and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Maspion position performs unexpectedly, Bank Qnb 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 Qnb will offset losses from the drop in Bank Qnb's long position.| Bank Maspion vs. Bank BRISyariah Tbk | Bank Maspion vs. Ace Hardware Indonesia | Bank Maspion vs. Merdeka Copper Gold | Bank Maspion vs. Mitra Pinasthika Mustika |
| Bank Qnb vs. Bank Victoria International | Bank Qnb vs. Bank Mnc Internasional | Bank Qnb vs. Bank Bumi Arta | Bank Qnb vs. Bank Capital 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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