Correlation Between Bintang Samudera and Bank Central
Can any of the company-specific risk be diversified away by investing in both Bintang Samudera and Bank Central 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 Bintang Samudera and Bank Central into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bintang Samudera Mandiri and Bank Central Asia, you can compare the effects of market volatilities on Bintang Samudera and Bank Central 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 Bintang Samudera with a short position of Bank Central. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bintang Samudera and Bank Central.
Diversification Opportunities for Bintang Samudera and Bank Central
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bintang and Bank is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bintang Samudera Mandiri and Bank Central Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Central Asia and Bintang Samudera 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 Bintang Samudera Mandiri are associated (or correlated) with Bank Central. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Central Asia has no effect on the direction of Bintang Samudera i.e., Bintang Samudera and Bank Central go up and down completely randomly.
Pair Corralation between Bintang Samudera and Bank Central
Assuming the 90 days trading horizon Bintang Samudera Mandiri is expected to under-perform the Bank Central. In addition to that, Bintang Samudera is 3.85 times more volatile than Bank Central Asia. It trades about -0.02 of its total potential returns per unit of risk. Bank Central Asia is currently generating about 0.05 per unit of volatility. If you would invest 787,700 in Bank Central Asia on August 28, 2024 and sell it today you would earn a total of 229,800 from holding Bank Central Asia or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bintang Samudera Mandiri vs. Bank Central Asia
Performance |
| Timeline |
| Bintang Samudera Mandiri |
| Bank Central Asia |
Bintang Samudera and Bank Central Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bintang Samudera and Bank Central
The main advantage of trading using opposite Bintang Samudera and Bank Central positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bintang Samudera position performs unexpectedly, Bank Central 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 Central will offset losses from the drop in Bank Central's long position.| Bintang Samudera vs. Adaro Minerals Indonesia | Bintang Samudera vs. PT Hasnur Internasional | Bintang Samudera vs. RMK Energy PT | Bintang Samudera vs. Indo Pureco Pratama |
| Bank Central vs. Bank Rakyat Indonesia | Bank Central vs. Bank Mandiri Persero | Bank Central vs. Bank Negara Indonesia | Bank Central vs. Astra International Tbk |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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