Correlation Between Indo Pureco and Bank Central
Can any of the company-specific risk be diversified away by investing in both Indo Pureco and Bank Central 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 Indo Pureco and Bank Central into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Pureco Pratama and Bank Central Asia, you can compare the effects of market volatilities on Indo Pureco and Bank Central 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 Indo Pureco with a short position of Bank Central. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Pureco and Bank Central.
Diversification Opportunities for Indo Pureco and Bank Central
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Indo and Bank is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Indo Pureco Pratama and Bank Central Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Central Asia and Indo Pureco 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 Indo Pureco Pratama are associated (or correlated) with Bank Central. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Central Asia has no effect on the direction of Indo Pureco i.e., Indo Pureco and Bank Central go up and down completely randomly.
Pair Corralation between Indo Pureco and Bank Central
If you would invest 1,400 in Indo Pureco Pratama on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Indo Pureco Pratama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Indo Pureco Pratama vs. Bank Central Asia
Performance |
| Timeline |
| Indo Pureco Pratama |
| Bank Central Asia |
Indo Pureco and Bank Central Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Pureco and Bank Central
The main advantage of trading using opposite Indo Pureco and Bank Central positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Pureco position performs unexpectedly, Bank Central 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 Central will offset losses from the drop in Bank Central's long position.| Indo Pureco vs. Bank Central Asia | Indo Pureco vs. Bank Rakyat Indonesia | Indo Pureco vs. Bayan Resources Tbk | Indo Pureco vs. Bank Mandiri Persero |
| Bank Central vs. Paninvest Tbk | Bank Central vs. Maskapai Reasuransi Indonesia | Bank Central vs. Panin Sekuritas Tbk | Bank Central vs. Wahana Ottomitra Multiartha |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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