Correlation Between Bank Bumi and Bank Maspion
Can any of the company-specific risk be diversified away by investing in both Bank Bumi 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 Bumi 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 Bumi Arta and Bank Maspion Indonesia, you can compare the effects of market volatilities on Bank Bumi 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 Bumi with a short position of Bank Maspion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Bumi and Bank Maspion.
Diversification Opportunities for Bank Bumi and Bank Maspion
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Bank is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank Bumi Arta 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 Bumi 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 Bumi Arta 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 Bumi i.e., Bank Bumi and Bank Maspion go up and down completely randomly.
Pair Corralation between Bank Bumi and Bank Maspion
Assuming the 90 days trading horizon Bank Bumi Arta is expected to generate 0.86 times more return on investment than Bank Maspion. However, Bank Bumi Arta is 1.16 times less risky than Bank Maspion. It trades about -0.09 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 71,500 in Bank Bumi Arta on September 1, 2024 and sell it today you would lose (3,500) from holding Bank Bumi Arta or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Bumi Arta vs. Bank Maspion Indonesia
Performance |
| Timeline |
| Bank Bumi Arta |
| Bank Maspion Indonesia |
Bank Bumi and Bank Maspion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Bumi and Bank Maspion
The main advantage of trading using opposite Bank Bumi and Bank Maspion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Bumi 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 Bumi vs. Bank Capital Indonesia | Bank Bumi vs. Bank Mnc Internasional | Bank Bumi vs. Bank Victoria International | Bank Bumi vs. Bank Qnb 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |