Correlation Between Bank Pan and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both Bank Pan and Berkah Beton 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 Pan and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Pan Indonesia and Berkah Beton Sadaya, you can compare the effects of market volatilities on Bank Pan and Berkah Beton 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 Pan with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Pan and Berkah Beton.
Diversification Opportunities for Bank Pan and Berkah Beton
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Berkah is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank Pan Indonesia and Berkah Beton Sadaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkah Beton Sadaya and Bank Pan 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 Pan Indonesia are associated (or correlated) with Berkah Beton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkah Beton Sadaya has no effect on the direction of Bank Pan i.e., Bank Pan and Berkah Beton go up and down completely randomly.
Pair Corralation between Bank Pan and Berkah Beton
Assuming the 90 days trading horizon Bank Pan Indonesia is expected to under-perform the Berkah Beton. But the stock apears to be less risky and, when comparing its historical volatility, Bank Pan Indonesia is 4.68 times less risky than Berkah Beton. The stock trades about -0.18 of its potential returns per unit of risk. The Berkah Beton Sadaya is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 500.00 in Berkah Beton Sadaya on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Berkah Beton Sadaya or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Pan Indonesia vs. Berkah Beton Sadaya
Performance |
| Timeline |
| Bank Pan Indonesia |
| Berkah Beton Sadaya |
Bank Pan and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Pan and Berkah Beton
The main advantage of trading using opposite Bank Pan and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Pan position performs unexpectedly, Berkah Beton 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 Berkah Beton will offset losses from the drop in Berkah Beton's long position.| Bank Pan vs. Bank Danamon Indonesia | Bank Pan vs. Bank Cimb Niaga | Bank Pan vs. Panin Financial Tbk | Bank Pan vs. Bank Maybank Indonesia |
| Berkah Beton vs. Bk Harda Internasional | Berkah Beton vs. Bank Net Indonesia | Berkah Beton vs. Bank Yudha Bhakti | Berkah Beton vs. Medikaloka Hermina PT |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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