Correlation Between Bank Victoria and Ace Hardware
Can any of the company-specific risk be diversified away by investing in both Bank Victoria and Ace Hardware 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 Victoria and Ace Hardware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Victoria International and Ace Hardware Indonesia, you can compare the effects of market volatilities on Bank Victoria and Ace Hardware 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 Victoria with a short position of Ace Hardware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Victoria and Ace Hardware.
Diversification Opportunities for Bank Victoria and Ace Hardware
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Ace is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank Victoria International and Ace Hardware Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ace Hardware Indonesia and Bank Victoria 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 Victoria International are associated (or correlated) with Ace Hardware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ace Hardware Indonesia has no effect on the direction of Bank Victoria i.e., Bank Victoria and Ace Hardware go up and down completely randomly.
Pair Corralation between Bank Victoria and Ace Hardware
Assuming the 90 days trading horizon Bank Victoria International is expected to generate 1.76 times more return on investment than Ace Hardware. However, Bank Victoria is 1.76 times more volatile than Ace Hardware Indonesia. It trades about -0.07 of its potential returns per unit of risk. Ace Hardware Indonesia is currently generating about -0.34 per unit of risk. If you would invest 10,100 in Bank Victoria International on September 2, 2024 and sell it today you would lose (700.00) from holding Bank Victoria International or give up 6.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Victoria International vs. Ace Hardware Indonesia
Performance |
| Timeline |
| Bank Victoria Intern |
| Ace Hardware Indonesia |
Bank Victoria and Ace Hardware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Victoria and Ace Hardware
The main advantage of trading using opposite Bank Victoria and Ace Hardware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Victoria position performs unexpectedly, Ace Hardware 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 Ace Hardware will offset losses from the drop in Ace Hardware's long position.| Bank Victoria vs. Ace Hardware Indonesia | Bank Victoria vs. Merdeka Copper Gold | Bank Victoria vs. Mitra Pinasthika Mustika | Bank Victoria vs. Jakarta Int Hotels |
| Ace Hardware vs. Japfa Comfeed Indonesia | Ace Hardware vs. Charoen Pokphand Indonesia | Ace Hardware vs. Erajaya Swasembada Tbk | Ace Hardware vs. Indofood Cbp Sukses |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |