Correlation Between PT Pelayaran and Bank Maybank
Can any of the company-specific risk be diversified away by investing in both PT Pelayaran and Bank Maybank 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 Pelayaran and Bank Maybank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Pelayaran Tamarin and Bank Maybank Indonesia, you can compare the effects of market volatilities on PT Pelayaran and Bank Maybank 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 Pelayaran with a short position of Bank Maybank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Pelayaran and Bank Maybank.
Diversification Opportunities for PT Pelayaran and Bank Maybank
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TAMU and Bank is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding PT Pelayaran Tamarin and Bank Maybank Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Maybank Indonesia and PT Pelayaran 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 Pelayaran Tamarin are associated (or correlated) with Bank Maybank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Maybank Indonesia has no effect on the direction of PT Pelayaran i.e., PT Pelayaran and Bank Maybank go up and down completely randomly.
Pair Corralation between PT Pelayaran and Bank Maybank
Assuming the 90 days trading horizon PT Pelayaran Tamarin is expected to under-perform the Bank Maybank. In addition to that, PT Pelayaran is 3.15 times more volatile than Bank Maybank Indonesia. It trades about -0.02 of its total potential returns per unit of risk. Bank Maybank Indonesia is currently generating about 0.01 per unit of volatility. If you would invest 22,111 in Bank Maybank Indonesia on September 3, 2024 and sell it today you would lose (511.00) from holding Bank Maybank Indonesia or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
PT Pelayaran Tamarin vs. Bank Maybank Indonesia
Performance |
| Timeline |
| PT Pelayaran Tamarin |
| Bank Maybank Indonesia |
PT Pelayaran and Bank Maybank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Pelayaran and Bank Maybank
The main advantage of trading using opposite PT Pelayaran and Bank Maybank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Pelayaran position performs unexpectedly, Bank Maybank 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 Maybank will offset losses from the drop in Bank Maybank's long position.| PT Pelayaran vs. Dharma Polimetal Tbk | PT Pelayaran vs. Trinitan Metals and | PT Pelayaran vs. Indosterling Technomedia Tbk | PT Pelayaran vs. Era Media Sejahtera |
| Bank Maybank vs. Paninvest Tbk | Bank Maybank vs. Mitra Pinasthika Mustika | Bank Maybank vs. Jakarta Int Hotels | Bank Maybank vs. Asuransi Harta Aman |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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