Correlation Between Citatah Tbk and Bank Ina
Can any of the company-specific risk be diversified away by investing in both Citatah Tbk and Bank Ina 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 Citatah Tbk and Bank Ina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citatah Tbk and Bank Ina Perdana, you can compare the effects of market volatilities on Citatah Tbk and Bank Ina 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 Citatah Tbk with a short position of Bank Ina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citatah Tbk and Bank Ina.
Diversification Opportunities for Citatah Tbk and Bank Ina
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citatah and Bank is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citatah Tbk and Bank Ina Perdana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ina Perdana and Citatah Tbk 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 Citatah Tbk are associated (or correlated) with Bank Ina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ina Perdana has no effect on the direction of Citatah Tbk i.e., Citatah Tbk and Bank Ina go up and down completely randomly.
Pair Corralation between Citatah Tbk and Bank Ina
Assuming the 90 days trading horizon Citatah Tbk is expected to generate 4.33 times more return on investment than Bank Ina. However, Citatah Tbk is 4.33 times more volatile than Bank Ina Perdana. It trades about 0.1 of its potential returns per unit of risk. Bank Ina Perdana is currently generating about -0.02 per unit of risk. If you would invest 1,300 in Citatah Tbk on September 19, 2024 and sell it today you would earn a total of 1,300 from holding Citatah Tbk or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citatah Tbk vs. Bank Ina Perdana
Performance |
| Timeline |
| Citatah Tbk |
| Bank Ina Perdana |
Citatah Tbk and Bank Ina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citatah Tbk and Bank Ina
The main advantage of trading using opposite Citatah Tbk and Bank Ina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citatah Tbk position performs unexpectedly, Bank Ina 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 Ina will offset losses from the drop in Bank Ina's long position.| Citatah Tbk vs. Kedaung Indah Can | Citatah Tbk vs. Kabelindo Murni Tbk | Citatah Tbk vs. Champion Pacific Indonesia | Citatah Tbk vs. Bhuwanatala Indah Permai |
| Bank Ina vs. Bk Harda Internasional | Bank Ina vs. Bank Yudha Bhakti | Bank Ina vs. Bank Sinarmas Tbk | Bank Ina vs. Bank Maspion 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |