Correlation Between Ciptadana Asset and Bank Central
Can any of the company-specific risk be diversified away by investing in both Ciptadana Asset and Bank Central 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 Ciptadana Asset and Bank Central into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ciptadana Asset Management and Bank Central Asia, you can compare the effects of market volatilities on Ciptadana Asset and Bank Central 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 Ciptadana Asset with a short position of Bank Central. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciptadana Asset and Bank Central.
Diversification Opportunities for Ciptadana Asset and Bank Central
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ciptadana and Bank is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ciptadana Asset Management and Bank Central Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Central Asia and Ciptadana Asset 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 Ciptadana Asset Management are associated (or correlated) with Bank Central. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Central Asia has no effect on the direction of Ciptadana Asset i.e., Ciptadana Asset and Bank Central go up and down completely randomly.
Pair Corralation between Ciptadana Asset and Bank Central
Assuming the 90 days trading horizon Ciptadana Asset Management is expected to generate 2.92 times more return on investment than Bank Central. However, Ciptadana Asset is 2.92 times more volatile than Bank Central Asia. It trades about 0.08 of its potential returns per unit of risk. Bank Central Asia is currently generating about -0.28 per unit of risk. If you would invest 5,626 in Ciptadana Asset Management on August 24, 2024 and sell it today you would earn a total of 274.00 from holding Ciptadana Asset Management or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ciptadana Asset Management vs. Bank Central Asia
Performance |
| Timeline |
| Ciptadana Asset Mana |
| Bank Central Asia |
Ciptadana Asset and Bank Central Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciptadana Asset and Bank Central
The main advantage of trading using opposite Ciptadana Asset and Bank Central positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciptadana Asset position performs unexpectedly, Bank Central 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 Central will offset losses from the drop in Bank Central's long position.| Ciptadana Asset vs. Bank Central Asia | Ciptadana Asset vs. Bank Rakyat Indonesia | Ciptadana Asset vs. Bayan Resources Tbk | Ciptadana Asset vs. Bank Mandiri Persero |
| Bank Central vs. Bank Rakyat Indonesia | Bank Central vs. Bank Mandiri Persero | Bank Central vs. Bank Negara Indonesia | Bank Central vs. Astra International Tbk |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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