Correlation Between Bank Negara and Invivyd
Can any of the company-specific risk be diversified away by investing in both Bank Negara and Invivyd 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 Invivyd 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 Invivyd, you can compare the effects of market volatilities on Bank Negara and Invivyd 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 Invivyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Invivyd.
Diversification Opportunities for Bank Negara and Invivyd
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Invivyd is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Invivyd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invivyd 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 Invivyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invivyd has no effect on the direction of Bank Negara i.e., Bank Negara and Invivyd go up and down completely randomly.
Pair Corralation between Bank Negara and Invivyd
Assuming the 90 days horizon Bank Negara Indonesia is expected to generate 0.67 times more return on investment than Invivyd. However, Bank Negara Indonesia is 1.49 times less risky than Invivyd. It trades about 0.03 of its potential returns per unit of risk. Invivyd is currently generating about -0.09 per unit of risk. If you would invest 1,430 in Bank Negara Indonesia on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Bank Negara Indonesia or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Negara Indonesia vs. Invivyd
Performance |
| Timeline |
| Bank Negara Indonesia |
| Invivyd |
Bank Negara and Invivyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Negara and Invivyd
The main advantage of trading using opposite Bank Negara and Invivyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, Invivyd 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 Invivyd will offset losses from the drop in Invivyd'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 |
| Invivyd vs. Recursion Pharmaceuticals | Invivyd vs. Atea Pharmaceuticals | Invivyd vs. Unity Biotechnology | Invivyd vs. Regenxbio |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |