Correlation Between Indointernet Tbk and Bank Artos
Can any of the company-specific risk be diversified away by investing in both Indointernet Tbk and Bank Artos 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 Indointernet Tbk and Bank Artos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indointernet Tbk PT and Bank Artos Indonesia, you can compare the effects of market volatilities on Indointernet Tbk and Bank Artos 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 Indointernet Tbk with a short position of Bank Artos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indointernet Tbk and Bank Artos.
Diversification Opportunities for Indointernet Tbk and Bank Artos
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indointernet and Bank is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Indointernet Tbk PT and Bank Artos Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Artos Indonesia and Indointernet 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 Indointernet Tbk PT are associated (or correlated) with Bank Artos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Artos Indonesia has no effect on the direction of Indointernet Tbk i.e., Indointernet Tbk and Bank Artos go up and down completely randomly.
Pair Corralation between Indointernet Tbk and Bank Artos
Assuming the 90 days trading horizon Indointernet Tbk PT is expected to under-perform the Bank Artos. But the stock apears to be less risky and, when comparing its historical volatility, Indointernet Tbk PT is 1.06 times less risky than Bank Artos. The stock trades about 0.0 of its potential returns per unit of risk. The Bank Artos Indonesia is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 227,000 in Bank Artos Indonesia on September 3, 2024 and sell it today you would earn a total of 23,000 from holding Bank Artos Indonesia or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indointernet Tbk PT vs. Bank Artos Indonesia
Performance |
| Timeline |
| Indointernet Tbk |
| Bank Artos Indonesia |
Indointernet Tbk and Bank Artos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indointernet Tbk and Bank Artos
The main advantage of trading using opposite Indointernet Tbk and Bank Artos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indointernet Tbk position performs unexpectedly, Bank Artos 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 Artos will offset losses from the drop in Bank Artos' long position.| Indointernet Tbk vs. Multipolar Technology Tbk | Indointernet Tbk vs. Indosterling Technomedia Tbk | Indointernet Tbk vs. PT Data Sinergitama | Indointernet Tbk vs. Envy Technologies Indonesia |
| Bank Artos vs. Elang Mahkota Teknologi | Bank Artos vs. Bank Yudha Bhakti | Bank Artos vs. Bk Harda Internasional | Bank Artos vs. PT Bukalapak |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |