Correlation Between Trimegah Securities and Bank Qnb
Can any of the company-specific risk be diversified away by investing in both Trimegah Securities 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 Trimegah Securities and Bank Qnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimegah Securities Tbk and Bank Qnb Indonesia, you can compare the effects of market volatilities on Trimegah Securities 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 Trimegah Securities with a short position of Bank Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Securities and Bank Qnb.
Diversification Opportunities for Trimegah Securities and Bank Qnb
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Trimegah and Bank is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Securities 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 Trimegah Securities 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 Trimegah Securities 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 Trimegah Securities i.e., Trimegah Securities and Bank Qnb go up and down completely randomly.
Pair Corralation between Trimegah Securities and Bank Qnb
Assuming the 90 days trading horizon Trimegah Securities Tbk is expected to generate 0.75 times more return on investment than Bank Qnb. However, Trimegah Securities Tbk is 1.33 times less risky than Bank Qnb. It trades about 0.09 of its potential returns per unit of risk. Bank Qnb Indonesia is currently generating about 0.0 per unit of risk. If you would invest 18,800 in Trimegah Securities Tbk on October 24, 2024 and sell it today you would earn a total of 19,200 from holding Trimegah Securities Tbk or generate 102.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimegah Securities Tbk vs. Bank Qnb Indonesia
Performance |
| Timeline |
| Trimegah Securities Tbk |
| Bank Qnb Indonesia |
Trimegah Securities and Bank Qnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Securities and Bank Qnb
The main advantage of trading using opposite Trimegah Securities and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Securities 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.| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa Tbk |
| Bank Qnb vs. Trimegah Securities Tbk | Bank Qnb vs. Trust Finance Indonesia | Bank Qnb vs. Panca Global Securities | Bank Qnb vs. Wahana Ottomitra Multiartha |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |