Correlation Between Bank Sinarmas and Bank Qnb
Can any of the company-specific risk be diversified away by investing in both Bank Sinarmas 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 Sinarmas 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 Sinarmas Tbk and Bank Qnb Indonesia, you can compare the effects of market volatilities on Bank Sinarmas 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 Sinarmas with a short position of Bank Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Sinarmas and Bank Qnb.
Diversification Opportunities for Bank Sinarmas and Bank Qnb
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Bank is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank Sinarmas Tbk 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 Sinarmas 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 Sinarmas Tbk 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 Sinarmas i.e., Bank Sinarmas and Bank Qnb go up and down completely randomly.
Pair Corralation between Bank Sinarmas and Bank Qnb
Assuming the 90 days trading horizon Bank Sinarmas Tbk is expected to under-perform the Bank Qnb. But the stock apears to be less risky and, when comparing its historical volatility, Bank Sinarmas Tbk is 3.75 times less risky than Bank Qnb. The stock trades about -0.19 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank Sinarmas Tbk vs. Bank Qnb Indonesia
Performance |
| Timeline |
| Bank Sinarmas Tbk |
| Bank Qnb Indonesia |
Bank Sinarmas and Bank Qnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Sinarmas and Bank Qnb
The main advantage of trading using opposite Bank Sinarmas and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Sinarmas 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 Sinarmas vs. Bank Tabungan Pensiunan | Bank Sinarmas vs. Bank Bumi Arta | Bank Sinarmas vs. Bank Permata Tbk | Bank Sinarmas vs. Bank Victoria International |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |