Correlation Between Bank Tabungan and Sido Muncul
Can any of the company-specific risk be diversified away by investing in both Bank Tabungan and Sido Muncul 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 Tabungan and Sido Muncul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Tabungan Pensiunan and Sido Muncul PT, you can compare the effects of market volatilities on Bank Tabungan and Sido Muncul 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 Tabungan with a short position of Sido Muncul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Tabungan and Sido Muncul.
Diversification Opportunities for Bank Tabungan and Sido Muncul
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Sido is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bank Tabungan Pensiunan and Sido Muncul PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sido Muncul PT and Bank Tabungan 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 Tabungan Pensiunan are associated (or correlated) with Sido Muncul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sido Muncul PT has no effect on the direction of Bank Tabungan i.e., Bank Tabungan and Sido Muncul go up and down completely randomly.
Pair Corralation between Bank Tabungan and Sido Muncul
Assuming the 90 days trading horizon Bank Tabungan Pensiunan is expected to under-perform the Sido Muncul. In addition to that, Bank Tabungan is 1.22 times more volatile than Sido Muncul PT. It trades about -0.07 of its total potential returns per unit of risk. Sido Muncul PT is currently generating about -0.02 per unit of volatility. If you would invest 69,607 in Sido Muncul PT on August 31, 2024 and sell it today you would lose (11,607) from holding Sido Muncul PT or give up 16.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Tabungan Pensiunan vs. Sido Muncul PT
Performance |
| Timeline |
| Bank Tabungan Pensiunan |
| Sido Muncul PT |
Bank Tabungan and Sido Muncul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Tabungan and Sido Muncul
The main advantage of trading using opposite Bank Tabungan and Sido Muncul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Tabungan position performs unexpectedly, Sido Muncul 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 Sido Muncul will offset losses from the drop in Sido Muncul's long position.| Bank Tabungan vs. Bank BRISyariah Tbk | Bank Tabungan vs. Ace Hardware Indonesia | Bank Tabungan vs. Merdeka Copper Gold | Bank Tabungan vs. Mitra Pinasthika Mustika |
| Sido Muncul vs. Bank BRISyariah Tbk | Sido Muncul vs. Mitra Pinasthika Mustika | Sido Muncul vs. Jakarta Int Hotels | Sido Muncul vs. Indosterling Technomedia 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |