Correlation Between Citra Borneo and PT Bank
Can any of the company-specific risk be diversified away by investing in both Citra Borneo and PT Bank 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 Citra Borneo and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Borneo Utama and PT Bank Bisnis, you can compare the effects of market volatilities on Citra Borneo and PT Bank 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 Citra Borneo with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Borneo and PT Bank.
Diversification Opportunities for Citra Borneo and PT Bank
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citra and BBSI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citra Borneo Utama and PT Bank Bisnis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Bisnis and Citra Borneo 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 Citra Borneo Utama are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Bisnis has no effect on the direction of Citra Borneo i.e., Citra Borneo and PT Bank go up and down completely randomly.
Pair Corralation between Citra Borneo and PT Bank
Assuming the 90 days trading horizon Citra Borneo Utama is expected to under-perform the PT Bank. In addition to that, Citra Borneo is 1.48 times more volatile than PT Bank Bisnis. It trades about -0.02 of its total potential returns per unit of risk. PT Bank Bisnis is currently generating about 0.03 per unit of volatility. If you would invest 344,000 in PT Bank Bisnis on October 24, 2024 and sell it today you would earn a total of 73,000 from holding PT Bank Bisnis or generate 21.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Citra Borneo Utama vs. PT Bank Bisnis
Performance |
| Timeline |
| Citra Borneo Utama |
| PT Bank Bisnis |
Citra Borneo and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Borneo and PT Bank
The main advantage of trading using opposite Citra Borneo and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Borneo position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| Citra Borneo vs. PT Bank Bisnis | Citra Borneo vs. Gunawan Dianjaya Steel | Citra Borneo vs. PT Wahana Interfood | Citra Borneo vs. PT Data Sinergitama |
| PT Bank vs. Bk Harda Internasional | PT Bank vs. Bank Yudha Bhakti | PT Bank vs. Bank Net Indonesia | PT Bank vs. Bank Amar 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |