Correlation Between Maskapai Reasuransi and Bank Yudha
Can any of the company-specific risk be diversified away by investing in both Maskapai Reasuransi and Bank Yudha 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 Maskapai Reasuransi and Bank Yudha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maskapai Reasuransi Indonesia and Bank Yudha Bhakti, you can compare the effects of market volatilities on Maskapai Reasuransi and Bank Yudha 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 Maskapai Reasuransi with a short position of Bank Yudha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maskapai Reasuransi and Bank Yudha.
Diversification Opportunities for Maskapai Reasuransi and Bank Yudha
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maskapai and Bank is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Maskapai Reasuransi Indonesia and Bank Yudha Bhakti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Yudha Bhakti and Maskapai Reasuransi 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 Maskapai Reasuransi Indonesia are associated (or correlated) with Bank Yudha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Yudha Bhakti has no effect on the direction of Maskapai Reasuransi i.e., Maskapai Reasuransi and Bank Yudha go up and down completely randomly.
Pair Corralation between Maskapai Reasuransi and Bank Yudha
Assuming the 90 days trading horizon Maskapai Reasuransi Indonesia is expected to under-perform the Bank Yudha. But the stock apears to be less risky and, when comparing its historical volatility, Maskapai Reasuransi Indonesia is 6.37 times less risky than Bank Yudha. The stock trades about -0.1 of its potential returns per unit of risk. The Bank Yudha Bhakti is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 26,000 in Bank Yudha Bhakti on August 29, 2024 and sell it today you would earn a total of 800.00 from holding Bank Yudha Bhakti or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maskapai Reasuransi Indonesia vs. Bank Yudha Bhakti
Performance |
| Timeline |
| Maskapai Reasuransi |
| Bank Yudha Bhakti |
Maskapai Reasuransi and Bank Yudha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maskapai Reasuransi and Bank Yudha
The main advantage of trading using opposite Maskapai Reasuransi and Bank Yudha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maskapai Reasuransi position performs unexpectedly, Bank Yudha 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 Yudha will offset losses from the drop in Bank Yudha's long position.| Maskapai Reasuransi vs. Lippo General Insurance | Maskapai Reasuransi vs. Paninvest Tbk | Maskapai Reasuransi vs. Mandala Multifinance Tbk | Maskapai Reasuransi vs. Bank Mayapada Internasional |
| Bank Yudha vs. Bank Artos Indonesia | Bank Yudha vs. Bk Harda Internasional | Bank Yudha vs. Bank Rakyat Indonesia | Bank Yudha vs. Bank Mnc Internasional |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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