Correlation Between BANK CENTRAL and SUMMARECON AGUNG
Can any of the company-specific risk be diversified away by investing in both BANK CENTRAL and SUMMARECON AGUNG 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 CENTRAL and SUMMARECON AGUNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK CENTRAL ASIA and SUMMARECON AGUNG, you can compare the effects of market volatilities on BANK CENTRAL and SUMMARECON AGUNG 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 CENTRAL with a short position of SUMMARECON AGUNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK CENTRAL and SUMMARECON AGUNG.
Diversification Opportunities for BANK CENTRAL and SUMMARECON AGUNG
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BANK and SUMMARECON is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding BANK CENTRAL ASIA and SUMMARECON AGUNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMMARECON AGUNG and BANK CENTRAL 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 CENTRAL ASIA are associated (or correlated) with SUMMARECON AGUNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMMARECON AGUNG has no effect on the direction of BANK CENTRAL i.e., BANK CENTRAL and SUMMARECON AGUNG go up and down completely randomly.
Pair Corralation between BANK CENTRAL and SUMMARECON AGUNG
Assuming the 90 days trading horizon BANK CENTRAL ASIA is expected to under-perform the SUMMARECON AGUNG. But the stock apears to be less risky and, when comparing its historical volatility, BANK CENTRAL ASIA is 5.07 times less risky than SUMMARECON AGUNG. The stock trades about -0.24 of its potential returns per unit of risk. The SUMMARECON AGUNG is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1.80 in SUMMARECON AGUNG on November 2, 2024 and sell it today you would lose (0.10) from holding SUMMARECON AGUNG or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BANK CENTRAL ASIA vs. SUMMARECON AGUNG
Performance |
| Timeline |
| BANK CENTRAL ASIA |
| SUMMARECON AGUNG |
BANK CENTRAL and SUMMARECON AGUNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK CENTRAL and SUMMARECON AGUNG
The main advantage of trading using opposite BANK CENTRAL and SUMMARECON AGUNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK CENTRAL position performs unexpectedly, SUMMARECON AGUNG 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 SUMMARECON AGUNG will offset losses from the drop in SUMMARECON AGUNG's long position.| BANK CENTRAL vs. MAVEN WIRELESS SWEDEN | BANK CENTRAL vs. Geely Automobile Holdings | BANK CENTRAL vs. Cairo Communication SpA | BANK CENTRAL vs. Iridium Communications |
| SUMMARECON AGUNG vs. Direct Line Insurance | SUMMARECON AGUNG vs. Sunstone Hotel Investors | SUMMARECON AGUNG vs. HANOVER INSURANCE | SUMMARECON AGUNG vs. VIENNA INSURANCE GR |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |