Correlation Between Bank Negara and Beard Energy
Can any of the company-specific risk be diversified away by investing in both Bank Negara and Beard Energy 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 Negara and Beard Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Negara Indonesia and Beard Energy Transition, you can compare the effects of market volatilities on Bank Negara and Beard Energy 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 Negara with a short position of Beard Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Beard Energy.
Diversification Opportunities for Bank Negara and Beard Energy
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Beard is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Beard Energy Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beard Energy Transition and Bank Negara 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 Negara Indonesia are associated (or correlated) with Beard Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beard Energy Transition has no effect on the direction of Bank Negara i.e., Bank Negara and Beard Energy go up and down completely randomly.
Pair Corralation between Bank Negara and Beard Energy
If you would invest 1,598 in Bank Negara Indonesia on September 13, 2024 and sell it today you would lose (7.00) from holding Bank Negara Indonesia or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Negara Indonesia vs. Beard Energy Transition
Performance |
| Timeline |
| Bank Negara Indonesia |
| Beard Energy Transition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Negara and Beard Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Negara and Beard Energy
The main advantage of trading using opposite Bank Negara and Beard Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, Beard Energy 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 Beard Energy will offset losses from the drop in Beard Energy's long position.| Bank Negara vs. Banco Bradesco SA | Bank Negara vs. Itau Unibanco Banco | Bank Negara vs. Lloyds Banking Group | Bank Negara vs. Deutsche Bank AG |
| Beard Energy vs. Valuence Merger Corp | Beard Energy vs. PowerUp Acquisition Corp | Beard Energy vs. Everest Consolidator Acquisition | Beard Energy vs. Valuence Merger Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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