Correlation Between Wahana Ottomitra and Bank Qnb
Can any of the company-specific risk be diversified away by investing in both Wahana Ottomitra 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 Wahana Ottomitra and Bank Qnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wahana Ottomitra Multiartha and Bank Qnb Indonesia, you can compare the effects of market volatilities on Wahana Ottomitra 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 Wahana Ottomitra with a short position of Bank Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahana Ottomitra and Bank Qnb.
Diversification Opportunities for Wahana Ottomitra and Bank Qnb
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wahana and Bank is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Ottomitra Multiartha 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 Wahana Ottomitra 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 Wahana Ottomitra Multiartha 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 Wahana Ottomitra i.e., Wahana Ottomitra and Bank Qnb go up and down completely randomly.
Pair Corralation between Wahana Ottomitra and Bank Qnb
Assuming the 90 days trading horizon Wahana Ottomitra Multiartha is expected to under-perform the Bank Qnb. But the stock apears to be less risky and, when comparing its historical volatility, Wahana Ottomitra Multiartha is 7.02 times less risky than Bank Qnb. The stock trades about -0.12 of its potential returns per unit of risk. The Bank Qnb Indonesia is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 7,500 in Bank Qnb Indonesia on August 28, 2024 and sell it today you would earn a total of 1,800 from holding Bank Qnb Indonesia or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wahana Ottomitra Multiartha vs. Bank Qnb Indonesia
Performance |
| Timeline |
| Wahana Ottomitra Mul |
| Bank Qnb Indonesia |
Wahana Ottomitra and Bank Qnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wahana Ottomitra and Bank Qnb
The main advantage of trading using opposite Wahana Ottomitra and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Ottomitra 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.| Wahana Ottomitra vs. Trimegah Securities Tbk | Wahana Ottomitra vs. Clipan Finance Indonesia | Wahana Ottomitra vs. Adira Dinamika Multi | Wahana Ottomitra vs. Paninvest Tbk |
| Bank Qnb vs. Bank Victoria International | Bank Qnb vs. Bank Mnc Internasional | Bank Qnb vs. Bank Bumi Arta | Bank Qnb vs. Bank Capital Indonesia |
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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