Correlation Between PT Soho and Bank Nationalnobu
Can any of the company-specific risk be diversified away by investing in both PT Soho and Bank Nationalnobu 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 PT Soho and Bank Nationalnobu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Soho Global and Bank Nationalnobu Tbk, you can compare the effects of market volatilities on PT Soho and Bank Nationalnobu 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 PT Soho with a short position of Bank Nationalnobu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Soho and Bank Nationalnobu.
Diversification Opportunities for PT Soho and Bank Nationalnobu
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SOHO and Bank is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding PT Soho Global and Bank Nationalnobu Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Nationalnobu Tbk and PT Soho 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 PT Soho Global are associated (or correlated) with Bank Nationalnobu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Nationalnobu Tbk has no effect on the direction of PT Soho i.e., PT Soho and Bank Nationalnobu go up and down completely randomly.
Pair Corralation between PT Soho and Bank Nationalnobu
Assuming the 90 days trading horizon PT Soho Global is expected to generate 0.41 times more return on investment than Bank Nationalnobu. However, PT Soho Global is 2.44 times less risky than Bank Nationalnobu. It trades about 0.08 of its potential returns per unit of risk. Bank Nationalnobu Tbk is currently generating about 0.03 per unit of risk. If you would invest 66,000 in PT Soho Global on August 26, 2024 and sell it today you would earn a total of 3,000 from holding PT Soho Global or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Soho Global vs. Bank Nationalnobu Tbk
Performance |
| Timeline |
| PT Soho Global |
| Bank Nationalnobu Tbk |
PT Soho and Bank Nationalnobu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Soho and Bank Nationalnobu
The main advantage of trading using opposite PT Soho and Bank Nationalnobu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Soho position performs unexpectedly, Bank Nationalnobu 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 Nationalnobu will offset losses from the drop in Bank Nationalnobu's long position.| PT Soho vs. Phapros Tbk PT | PT Soho vs. Prodia Widyahusada Tbk | PT Soho vs. Sarana Meditama Metropolitan | PT Soho vs. Metro Healthcare Indonesia |
| Bank Nationalnobu vs. Paninvest Tbk | Bank Nationalnobu vs. Panin Sekuritas Tbk | Bank Nationalnobu vs. Wahana Ottomitra Multiartha | Bank Nationalnobu vs. Lenox Pasifik Investama |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |