Correlation Between Bank Ocbc and Astra Graphia
Can any of the company-specific risk be diversified away by investing in both Bank Ocbc and Astra Graphia 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 Ocbc and Astra Graphia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Ocbc Nisp and Astra Graphia Tbk, you can compare the effects of market volatilities on Bank Ocbc and Astra Graphia 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 Ocbc with a short position of Astra Graphia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ocbc and Astra Graphia.
Diversification Opportunities for Bank Ocbc and Astra Graphia
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Astra is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ocbc Nisp and Astra Graphia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Graphia Tbk and Bank Ocbc 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 Ocbc Nisp are associated (or correlated) with Astra Graphia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Graphia Tbk has no effect on the direction of Bank Ocbc i.e., Bank Ocbc and Astra Graphia go up and down completely randomly.
Pair Corralation between Bank Ocbc and Astra Graphia
Assuming the 90 days trading horizon Bank Ocbc Nisp is expected to generate 1.08 times more return on investment than Astra Graphia. However, Bank Ocbc is 1.08 times more volatile than Astra Graphia Tbk. It trades about 0.04 of its potential returns per unit of risk. Astra Graphia Tbk is currently generating about 0.0 per unit of risk. If you would invest 121,600 in Bank Ocbc Nisp on November 5, 2024 and sell it today you would earn a total of 12,900 from holding Bank Ocbc Nisp or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Ocbc Nisp vs. Astra Graphia Tbk
Performance |
| Timeline |
| Bank Ocbc Nisp |
| Astra Graphia Tbk |
Bank Ocbc and Astra Graphia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ocbc and Astra Graphia
The main advantage of trading using opposite Bank Ocbc and Astra Graphia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ocbc position performs unexpectedly, Astra Graphia 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 Astra Graphia will offset losses from the drop in Astra Graphia's long position.| Bank Ocbc vs. Bank Mega Tbk | Bank Ocbc vs. Bank Pan Indonesia | Bank Ocbc vs. Bank Permata Tbk | Bank Ocbc vs. Bank Cimb Niaga |
| Astra Graphia vs. Astra Otoparts Tbk | Astra Graphia vs. Citra Marga Nusaphala | Astra Graphia vs. Hexindo Adiperkasa Tbk | Astra Graphia vs. Metrodata Electronics 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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