Correlation Between Bank Artha and Bank Windu
Can any of the company-specific risk be diversified away by investing in both Bank Artha and Bank Windu 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 Bank Artha and Bank Windu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Artha Graha and Bank Windu Kentjana, you can compare the effects of market volatilities on Bank Artha and Bank Windu 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 Bank Artha with a short position of Bank Windu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Artha and Bank Windu.
Diversification Opportunities for Bank Artha and Bank Windu
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Bank is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bank Artha Graha and Bank Windu Kentjana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Windu Kentjana and Bank Artha 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 Bank Artha Graha are associated (or correlated) with Bank Windu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Windu Kentjana has no effect on the direction of Bank Artha i.e., Bank Artha and Bank Windu go up and down completely randomly.
Pair Corralation between Bank Artha and Bank Windu
Assuming the 90 days trading horizon Bank Artha Graha is expected to generate 7.32 times more return on investment than Bank Windu. However, Bank Artha is 7.32 times more volatile than Bank Windu Kentjana. It trades about 0.11 of its potential returns per unit of risk. Bank Windu Kentjana is currently generating about -0.04 per unit of risk. If you would invest 21,200 in Bank Artha Graha on November 3, 2024 and sell it today you would earn a total of 3,000 from holding Bank Artha Graha or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Artha Graha vs. Bank Windu Kentjana
Performance |
| Timeline |
| Bank Artha Graha |
| Bank Windu Kentjana |
Bank Artha and Bank Windu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Artha and Bank Windu
The main advantage of trading using opposite Bank Artha and Bank Windu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Artha position performs unexpectedly, Bank Windu 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 Windu will offset losses from the drop in Bank Windu's long position.| Bank Artha vs. Bank Victoria International | Bank Artha vs. Bank Bumi Arta | Bank Artha vs. Bank Mnc Internasional | Bank Artha vs. Bank Qnb Indonesia |
| Bank Windu vs. Bank Mayapada Internasional | Bank Windu vs. Bank Artha Graha | Bank Windu vs. Bank Pembangunan Daerah | Bank Windu vs. Bank Mega Tbk |
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
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |