Correlation Between Bank Nationalnobu and Trinitan Metals
Can any of the company-specific risk be diversified away by investing in both Bank Nationalnobu and Trinitan Metals 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 Trinitan Metals 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 Trinitan Metals and, you can compare the effects of market volatilities on Bank Nationalnobu and Trinitan Metals 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 Trinitan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Nationalnobu and Trinitan Metals.
Diversification Opportunities for Bank Nationalnobu and Trinitan Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Trinitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Nationalnobu Tbk and Trinitan Metals and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinitan Metals 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 Trinitan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinitan Metals has no effect on the direction of Bank Nationalnobu i.e., Bank Nationalnobu and Trinitan Metals go up and down completely randomly.
Pair Corralation between Bank Nationalnobu and Trinitan Metals
If you would invest 47,200 in Bank Nationalnobu Tbk on September 2, 2024 and sell it today you would earn a total of 21,300 from holding Bank Nationalnobu Tbk or generate 45.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Nationalnobu Tbk vs. Trinitan Metals and
Performance |
| Timeline |
| Bank Nationalnobu Tbk |
| Trinitan Metals |
Bank Nationalnobu and Trinitan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Nationalnobu and Trinitan Metals
The main advantage of trading using opposite Bank Nationalnobu and Trinitan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Nationalnobu position performs unexpectedly, Trinitan Metals 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 Trinitan Metals will offset losses from the drop in Trinitan Metals' long position.| Bank Nationalnobu vs. Bank BRISyariah Tbk | Bank Nationalnobu vs. Ace Hardware Indonesia | Bank Nationalnobu vs. Merdeka Copper Gold | Bank Nationalnobu vs. Mitra Pinasthika Mustika |
| Trinitan Metals vs. PT Data Sinergitama | Trinitan Metals vs. Dharma Polimetal Tbk | Trinitan Metals vs. Smartfren Telecom Tbk | Trinitan Metals vs. Weha Transportasi Indonesia |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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