Correlation Between Bank Ina and Kabelindo Murni
Can any of the company-specific risk be diversified away by investing in both Bank Ina and Kabelindo Murni 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 Kabelindo Murni 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 Kabelindo Murni Tbk, you can compare the effects of market volatilities on Bank Ina and Kabelindo Murni 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 Kabelindo Murni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ina and Kabelindo Murni.
Diversification Opportunities for Bank Ina and Kabelindo Murni
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Kabelindo is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ina Perdana and Kabelindo Murni Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kabelindo Murni 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 Kabelindo Murni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kabelindo Murni Tbk has no effect on the direction of Bank Ina i.e., Bank Ina and Kabelindo Murni go up and down completely randomly.
Pair Corralation between Bank Ina and Kabelindo Murni
Assuming the 90 days trading horizon Bank Ina Perdana is expected to generate 0.27 times more return on investment than Kabelindo Murni. However, Bank Ina Perdana is 3.77 times less risky than Kabelindo Murni. It trades about 0.07 of its potential returns per unit of risk. Kabelindo Murni Tbk is currently generating about -0.08 per unit of risk. If you would invest 412,000 in Bank Ina Perdana on December 2, 2024 and sell it today you would earn a total of 3,000 from holding Bank Ina Perdana or generate 0.73% 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. Kabelindo Murni Tbk
Performance |
Timeline |
Bank Ina Perdana |
Kabelindo Murni Tbk |
Bank Ina and Kabelindo Murni Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Ina and Kabelindo Murni
The main advantage of trading using opposite Bank Ina and Kabelindo Murni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ina position performs unexpectedly, Kabelindo Murni 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 Kabelindo Murni will offset losses from the drop in Kabelindo Murni'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 |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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