Correlation Between Personel Alih and Bank Ocbc
Can any of the company-specific risk be diversified away by investing in both Personel Alih and Bank Ocbc 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 Personel Alih and Bank Ocbc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Personel Alih Daya and Bank Ocbc Nisp, you can compare the effects of market volatilities on Personel Alih and Bank Ocbc 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 Personel Alih with a short position of Bank Ocbc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Personel Alih and Bank Ocbc.
Diversification Opportunities for Personel Alih and Bank Ocbc
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Personel and Bank is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Personel Alih Daya and Bank Ocbc Nisp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ocbc Nisp and Personel Alih 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 Personel Alih Daya are associated (or correlated) with Bank Ocbc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ocbc Nisp has no effect on the direction of Personel Alih i.e., Personel Alih and Bank Ocbc go up and down completely randomly.
Pair Corralation between Personel Alih and Bank Ocbc
Assuming the 90 days trading horizon Personel Alih Daya is expected to under-perform the Bank Ocbc. In addition to that, Personel Alih is 7.13 times more volatile than Bank Ocbc Nisp. It trades about -0.05 of its total potential returns per unit of risk. Bank Ocbc Nisp is currently generating about -0.02 per unit of volatility. If you would invest 134,000 in Bank Ocbc Nisp on September 4, 2024 and sell it today you would lose (1,000.00) from holding Bank Ocbc Nisp or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Personel Alih Daya vs. Bank Ocbc Nisp
Performance |
| Timeline |
| Personel Alih Daya |
| Bank Ocbc Nisp |
Personel Alih and Bank Ocbc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Personel Alih and Bank Ocbc
The main advantage of trading using opposite Personel Alih and Bank Ocbc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Personel Alih position performs unexpectedly, Bank Ocbc 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 Ocbc will offset losses from the drop in Bank Ocbc's long position.| Personel Alih vs. Media Nusantara Citra | Personel Alih vs. PT Charlie Hospital | Personel Alih vs. Tridomain Performance Materials | Personel Alih vs. Alumindo Light Metal |
| Bank Ocbc vs. Paninvest Tbk | Bank Ocbc vs. Mitra Pinasthika Mustika | Bank Ocbc vs. Jakarta Int Hotels | Bank Ocbc vs. Asuransi Harta Aman |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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