Correlation Between Tigaraksa Satria and Bank Qnb
Can any of the company-specific risk be diversified away by investing in both Tigaraksa Satria and Bank Qnb 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 Tigaraksa Satria and Bank Qnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tigaraksa Satria Tbk and Bank Qnb Indonesia, you can compare the effects of market volatilities on Tigaraksa Satria and Bank Qnb 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 Tigaraksa Satria with a short position of Bank Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tigaraksa Satria and Bank Qnb.
Diversification Opportunities for Tigaraksa Satria and Bank Qnb
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tigaraksa and Bank is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tigaraksa Satria Tbk and Bank Qnb Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Qnb Indonesia and Tigaraksa Satria 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 Tigaraksa Satria Tbk are associated (or correlated) with Bank Qnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Qnb Indonesia has no effect on the direction of Tigaraksa Satria i.e., Tigaraksa Satria and Bank Qnb go up and down completely randomly.
Pair Corralation between Tigaraksa Satria and Bank Qnb
Assuming the 90 days trading horizon Tigaraksa Satria Tbk is expected to generate 0.58 times more return on investment than Bank Qnb. However, Tigaraksa Satria Tbk is 1.72 times less risky than Bank Qnb. It trades about -0.05 of its potential returns per unit of risk. Bank Qnb Indonesia is currently generating about -0.05 per unit of risk. If you would invest 637,500 in Tigaraksa Satria Tbk on August 27, 2024 and sell it today you would lose (20,000) from holding Tigaraksa Satria Tbk or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tigaraksa Satria Tbk vs. Bank Qnb Indonesia
Performance |
| Timeline |
| Tigaraksa Satria Tbk |
| Bank Qnb Indonesia |
Tigaraksa Satria and Bank Qnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tigaraksa Satria and Bank Qnb
The main advantage of trading using opposite Tigaraksa Satria and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigaraksa Satria position performs unexpectedly, Bank Qnb 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 Qnb will offset losses from the drop in Bank Qnb's long position.| Tigaraksa Satria vs. Kalbe Farma Tbk | Tigaraksa Satria vs. Indofood Cbp Sukses | Tigaraksa Satria vs. Akr Corporindo Tbk |
| Bank Qnb vs. Paninvest Tbk | Bank Qnb vs. Wahana Ottomitra Multiartha | Bank Qnb 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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