Correlation Between Bank Ina and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Bank Ina and Citatah Tbk 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 Bank Ina and Citatah Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Ina Perdana and Citatah Tbk, you can compare the effects of market volatilities on Bank Ina and Citatah Tbk 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 Bank Ina with a short position of Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ina and Citatah Tbk.
Diversification Opportunities for Bank Ina and Citatah Tbk
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Citatah is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ina Perdana and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah Tbk and Bank Ina 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 Bank Ina Perdana are associated (or correlated) with Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Bank Ina i.e., Bank Ina and Citatah Tbk go up and down completely randomly.
Pair Corralation between Bank Ina and Citatah Tbk
Assuming the 90 days trading horizon Bank Ina Perdana is expected to under-perform the Citatah Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Bank Ina Perdana is 5.85 times less risky than Citatah Tbk. The stock trades about -0.13 of its potential returns per unit of risk. The Citatah Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,500 in Citatah Tbk on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Citatah Tbk or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Ina Perdana vs. Citatah Tbk
Performance |
Timeline |
Bank Ina Perdana |
Citatah Tbk |
Bank Ina and Citatah Tbk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Ina and Citatah Tbk
The main advantage of trading using opposite Bank Ina and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ina position performs unexpectedly, Citatah Tbk 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 Citatah Tbk will offset losses from the drop in Citatah Tbk's long position.Bank Ina vs. Bk Harda Internasional | Bank Ina vs. Bank Yudha Bhakti | Bank Ina vs. Bank Sinarmas Tbk | Bank Ina vs. Bank Maspion Indonesia |
Citatah Tbk vs. Siloam International Hospitals | Citatah Tbk vs. Weha Transportasi Indonesia | Citatah Tbk vs. Diamond Food Indonesia | Citatah Tbk vs. Metro Healthcare 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |