Correlation Between Yulie Sekurindo and Bank Mestika
Can any of the company-specific risk be diversified away by investing in both Yulie Sekurindo and Bank Mestika 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 Yulie Sekurindo and Bank Mestika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yulie Sekurindo Tbk and Bank Mestika Dharma, you can compare the effects of market volatilities on Yulie Sekurindo and Bank Mestika 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 Yulie Sekurindo with a short position of Bank Mestika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulie Sekurindo and Bank Mestika.
Diversification Opportunities for Yulie Sekurindo and Bank Mestika
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yulie and Bank is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Yulie Sekurindo Tbk and Bank Mestika Dharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mestika Dharma and Yulie Sekurindo 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 Yulie Sekurindo Tbk are associated (or correlated) with Bank Mestika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mestika Dharma has no effect on the direction of Yulie Sekurindo i.e., Yulie Sekurindo and Bank Mestika go up and down completely randomly.
Pair Corralation between Yulie Sekurindo and Bank Mestika
Assuming the 90 days trading horizon Yulie Sekurindo Tbk is expected to generate 0.62 times more return on investment than Bank Mestika. However, Yulie Sekurindo Tbk is 1.6 times less risky than Bank Mestika. It trades about 0.08 of its potential returns per unit of risk. Bank Mestika Dharma is currently generating about -0.04 per unit of risk. If you would invest 240,000 in Yulie Sekurindo Tbk on December 10, 2024 and sell it today you would earn a total of 28,000 from holding Yulie Sekurindo Tbk or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulie Sekurindo Tbk vs. Bank Mestika Dharma
Performance |
| Timeline |
| Yulie Sekurindo Tbk |
| Bank Mestika Dharma |
Yulie Sekurindo and Bank Mestika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulie Sekurindo and Bank Mestika
The main advantage of trading using opposite Yulie Sekurindo and Bank Mestika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulie Sekurindo position performs unexpectedly, Bank Mestika 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 Mestika will offset losses from the drop in Bank Mestika's long position.| Yulie Sekurindo vs. Trimegah Securities Tbk | ||
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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