Correlation Between PT Techno9 and Bank Tabungan
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and Bank Tabungan 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 Techno9 and Bank Tabungan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Techno9 Indonesia and Bank Tabungan Negara, you can compare the effects of market volatilities on PT Techno9 and Bank Tabungan 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 Techno9 with a short position of Bank Tabungan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and Bank Tabungan.
Diversification Opportunities for PT Techno9 and Bank Tabungan
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NINE and Bank is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and Bank Tabungan Negara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Tabungan Negara and PT Techno9 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 Techno9 Indonesia are associated (or correlated) with Bank Tabungan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Tabungan Negara has no effect on the direction of PT Techno9 i.e., PT Techno9 and Bank Tabungan go up and down completely randomly.
Pair Corralation between PT Techno9 and Bank Tabungan
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 3.85 times more return on investment than Bank Tabungan. However, PT Techno9 is 3.85 times more volatile than Bank Tabungan Negara. It trades about 0.09 of its potential returns per unit of risk. Bank Tabungan Negara is currently generating about -0.02 per unit of risk. If you would invest 3,500 in PT Techno9 Indonesia on November 27, 2024 and sell it today you would earn a total of 16,900 from holding PT Techno9 Indonesia or generate 482.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. Bank Tabungan Negara
Performance |
| Timeline |
| PT Techno9 Indonesia |
| Bank Tabungan Negara |
PT Techno9 and Bank Tabungan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and Bank Tabungan
The main advantage of trading using opposite PT Techno9 and Bank Tabungan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, Bank Tabungan 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 Tabungan will offset losses from the drop in Bank Tabungan's long position.| PT Techno9 vs. Weha Transportasi Indonesia | PT Techno9 vs. PT UBC Medical | PT Techno9 vs. Arkadia Digital Media | PT Techno9 vs. Smartfren Telecom Tbk |
| Bank Tabungan vs. Bank Negara Indonesia | Bank Tabungan vs. Bank Mandiri Persero | Bank Tabungan vs. Bank Jabar | Bank Tabungan vs. Jasa Marga 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |