Correlation Between PT Multi and Bank Ina
Can any of the company-specific risk be diversified away by investing in both PT Multi 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 PT Multi and Bank Ina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Multi Garam and Bank Ina Perdana, you can compare the effects of market volatilities on PT Multi 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 PT Multi with a short position of Bank Ina. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Multi and Bank Ina.
Diversification Opportunities for PT Multi and Bank Ina
Average diversification
The 3 months correlation between FOLK and Bank is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PT Multi Garam 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 PT Multi 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 PT Multi Garam 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 PT Multi i.e., PT Multi and Bank Ina go up and down completely randomly.
Pair Corralation between PT Multi and Bank Ina
If you would invest 5,000 in PT Multi Garam on September 19, 2024 and sell it today you would earn a total of 0.00 from holding PT Multi Garam or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Multi Garam vs. Bank Ina Perdana
Performance |
| Timeline |
| PT Multi Garam |
| Bank Ina Perdana |
PT Multi and Bank Ina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Multi and Bank Ina
The main advantage of trading using opposite PT Multi and Bank Ina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Multi 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.| PT Multi vs. Bank Central Asia | PT Multi vs. Bank Rakyat Indonesia | PT Multi vs. Bayan Resources Tbk | PT Multi vs. Bank Mandiri Persero |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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