Correlation Between Clipan Finance and Bank Bukopin
Can any of the company-specific risk be diversified away by investing in both Clipan Finance and Bank Bukopin 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 Clipan Finance and Bank Bukopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clipan Finance Indonesia and Bank Bukopin Tbk, you can compare the effects of market volatilities on Clipan Finance and Bank Bukopin 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 Clipan Finance with a short position of Bank Bukopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Bank Bukopin.
Diversification Opportunities for Clipan Finance and Bank Bukopin
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clipan and Bank is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia and Bank Bukopin Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Bukopin Tbk and Clipan Finance 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 Clipan Finance Indonesia are associated (or correlated) with Bank Bukopin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Bukopin Tbk has no effect on the direction of Clipan Finance i.e., Clipan Finance and Bank Bukopin go up and down completely randomly.
Pair Corralation between Clipan Finance and Bank Bukopin
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to generate 1.03 times more return on investment than Bank Bukopin. However, Clipan Finance is 1.03 times more volatile than Bank Bukopin Tbk. It trades about 0.03 of its potential returns per unit of risk. Bank Bukopin Tbk is currently generating about -0.05 per unit of risk. If you would invest 26,754 in Clipan Finance Indonesia on September 2, 2024 and sell it today you would earn a total of 4,846 from holding Clipan Finance Indonesia or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Bank Bukopin Tbk
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Bank Bukopin Tbk |
Clipan Finance and Bank Bukopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Bank Bukopin
The main advantage of trading using opposite Clipan Finance and Bank Bukopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance position performs unexpectedly, Bank Bukopin 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 Bukopin will offset losses from the drop in Bank Bukopin's long position.| Clipan Finance vs. Ace Hardware Indonesia | Clipan Finance vs. Merdeka Copper Gold | Clipan Finance vs. Mitra Pinasthika Mustika | Clipan Finance vs. Jakarta Int Hotels |
| Bank Bukopin vs. Bank Danamon Indonesia | Bank Bukopin vs. Bank Cimb Niaga | Bank Bukopin vs. Bank Tabungan Negara | Bank Bukopin vs. Bank Jabar |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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