Correlation Between PT Hatten and Bank Ocbc
Can any of the company-specific risk be diversified away by investing in both PT Hatten and Bank Ocbc 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 Hatten and Bank Ocbc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Hatten Bali and Bank Ocbc Nisp, you can compare the effects of market volatilities on PT Hatten and Bank Ocbc 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 Hatten with a short position of Bank Ocbc. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and Bank Ocbc.
Diversification Opportunities for PT Hatten and Bank Ocbc
Good diversification
The 3 months correlation between WINE and Bank is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and Bank Ocbc Nisp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ocbc Nisp and PT Hatten 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 Hatten Bali are associated (or correlated) with Bank Ocbc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ocbc Nisp has no effect on the direction of PT Hatten i.e., PT Hatten and Bank Ocbc go up and down completely randomly.
Pair Corralation between PT Hatten and Bank Ocbc
Assuming the 90 days trading horizon PT Hatten Bali is expected to under-perform the Bank Ocbc. In addition to that, PT Hatten is 3.78 times more volatile than Bank Ocbc Nisp. It trades about -0.1 of its total potential returns per unit of risk. Bank Ocbc Nisp is currently generating about 0.07 per unit of volatility. If you would invest 133,500 in Bank Ocbc Nisp on August 30, 2024 and sell it today you would earn a total of 1,500 from holding Bank Ocbc Nisp or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hatten Bali vs. Bank Ocbc Nisp
Performance |
| Timeline |
| PT Hatten Bali |
| Bank Ocbc Nisp |
PT Hatten and Bank Ocbc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hatten and Bank Ocbc
The main advantage of trading using opposite PT Hatten and Bank Ocbc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hatten position performs unexpectedly, Bank Ocbc 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 Ocbc will offset losses from the drop in Bank Ocbc's long position.| PT Hatten vs. PT Jobubu Jarum | PT Hatten vs. PT Dewi Shri | PT Hatten vs. PT Data Sinergitama | PT Hatten vs. PAM Mineral Tbk |
| Bank Ocbc vs. Bank Mega Tbk | Bank Ocbc vs. Bank Pan Indonesia | Bank Ocbc vs. Bank Permata Tbk | Bank Ocbc vs. Bank Cimb Niaga |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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