Correlation Between Bank Negara and Blue Whale
Can any of the company-specific risk be diversified away by investing in both Bank Negara and Blue Whale 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 Blue Whale 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 Blue Whale Acquisition, you can compare the effects of market volatilities on Bank Negara and Blue Whale 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 Blue Whale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Blue Whale.
Diversification Opportunities for Bank Negara and Blue Whale
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Blue is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Blue Whale Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Whale Acquisition 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 Blue Whale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Whale Acquisition has no effect on the direction of Bank Negara i.e., Bank Negara and Blue Whale go up and down completely randomly.
Pair Corralation between Bank Negara and Blue Whale
If you would invest 1,018 in Blue Whale Acquisition on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Blue Whale Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Bank Negara Indonesia vs. Blue Whale Acquisition
Performance |
| Timeline |
| Bank Negara Indonesia |
| Blue Whale Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Negara and Blue Whale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Negara and Blue Whale
The main advantage of trading using opposite Bank Negara and Blue Whale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, Blue Whale 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 Blue Whale will offset losses from the drop in Blue Whale'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 |
| Blue Whale vs. Mars Acquisition Corp | Blue Whale vs. Israel Acquisitions Corp | Blue Whale vs. Golden Star Acquisition | Blue Whale vs. Welsbach Technology Metals |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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