Correlation Between Bank Nationalnobu and Minna Padi
Can any of the company-specific risk be diversified away by investing in both Bank Nationalnobu and Minna Padi 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 Nationalnobu and Minna Padi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Nationalnobu Tbk and Minna Padi Investama, you can compare the effects of market volatilities on Bank Nationalnobu and Minna Padi 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 Nationalnobu with a short position of Minna Padi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Nationalnobu and Minna Padi.
Diversification Opportunities for Bank Nationalnobu and Minna Padi
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Minna is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bank Nationalnobu Tbk and Minna Padi Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minna Padi Investama and Bank Nationalnobu 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 Nationalnobu Tbk are associated (or correlated) with Minna Padi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minna Padi Investama has no effect on the direction of Bank Nationalnobu i.e., Bank Nationalnobu and Minna Padi go up and down completely randomly.
Pair Corralation between Bank Nationalnobu and Minna Padi
Assuming the 90 days trading horizon Bank Nationalnobu Tbk is expected to under-perform the Minna Padi. But the stock apears to be less risky and, when comparing its historical volatility, Bank Nationalnobu Tbk is 1.48 times less risky than Minna Padi. The stock trades about -0.02 of its potential returns per unit of risk. The Minna Padi Investama is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Minna Padi Investama on October 26, 2024 and sell it today you would earn a total of 100.00 from holding Minna Padi Investama or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bank Nationalnobu Tbk vs. Minna Padi Investama
Performance |
| Timeline |
| Bank Nationalnobu Tbk |
| Minna Padi Investama |
Bank Nationalnobu and Minna Padi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Nationalnobu and Minna Padi
The main advantage of trading using opposite Bank Nationalnobu and Minna Padi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Nationalnobu position performs unexpectedly, Minna Padi 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 Minna Padi will offset losses from the drop in Minna Padi's long position.| Bank Nationalnobu vs. Indofood Cbp Sukses | Bank Nationalnobu vs. Gunawan Dianjaya Steel | Bank Nationalnobu vs. Panin Financial Tbk | Bank Nationalnobu vs. Sentra Food Indonesia |
| Minna Padi vs. Panca Global Securities | Minna Padi vs. Panin Sekuritas Tbk | Minna Padi vs. Reliance Securities Tbk | Minna Padi vs. Bank Nationalnobu 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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