Correlation Between Bank Mayapada and Bank Windu
Can any of the company-specific risk be diversified away by investing in both Bank Mayapada 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 Mayapada 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 Mayapada Internasional and Bank Windu Kentjana, you can compare the effects of market volatilities on Bank Mayapada 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 Mayapada with a short position of Bank Windu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mayapada and Bank Windu.
Diversification Opportunities for Bank Mayapada and Bank Windu
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Bank is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mayapada Internasional 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 Mayapada 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 Mayapada Internasional 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 Mayapada i.e., Bank Mayapada and Bank Windu go up and down completely randomly.
Pair Corralation between Bank Mayapada and Bank Windu
Assuming the 90 days trading horizon Bank Mayapada Internasional is expected to under-perform the Bank Windu. In addition to that, Bank Mayapada is 1.37 times more volatile than Bank Windu Kentjana. It trades about -0.09 of its total potential returns per unit of risk. Bank Windu Kentjana is currently generating about -0.04 per unit of volatility. If you would invest 7,400 in Bank Windu Kentjana on November 3, 2024 and sell it today you would lose (100.00) from holding Bank Windu Kentjana or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mayapada Internasional vs. Bank Windu Kentjana
Performance |
| Timeline |
| Bank Mayapada Intern |
| Bank Windu Kentjana |
Bank Mayapada and Bank Windu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mayapada and Bank Windu
The main advantage of trading using opposite Bank Mayapada and Bank Windu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mayapada 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 Mayapada vs. Bank Mega Tbk | Bank Mayapada vs. Bank Ocbc Nisp | Bank Mayapada vs. Bank Windu Kentjana | Bank Mayapada vs. Bank Artha Graha |
| 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |