Correlation Between Bank Ina and Mitrabara Adiperdana
Can any of the company-specific risk be diversified away by investing in both Bank Ina and Mitrabara Adiperdana 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 Mitrabara Adiperdana 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 Mitrabara Adiperdana PT, you can compare the effects of market volatilities on Bank Ina and Mitrabara Adiperdana 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 Mitrabara Adiperdana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ina and Mitrabara Adiperdana.
Diversification Opportunities for Bank Ina and Mitrabara Adiperdana
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Mitrabara is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ina Perdana and Mitrabara Adiperdana PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabara Adiperdana 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 Mitrabara Adiperdana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabara Adiperdana has no effect on the direction of Bank Ina i.e., Bank Ina and Mitrabara Adiperdana go up and down completely randomly.
Pair Corralation between Bank Ina and Mitrabara Adiperdana
Assuming the 90 days trading horizon Bank Ina Perdana is expected to generate 0.55 times more return on investment than Mitrabara Adiperdana. However, Bank Ina Perdana is 1.81 times less risky than Mitrabara Adiperdana. It trades about 0.02 of its potential returns per unit of risk. Mitrabara Adiperdana PT is currently generating about -0.08 per unit of risk. If you would invest 394,000 in Bank Ina Perdana on September 12, 2024 and sell it today you would earn a total of 14,000 from holding Bank Ina Perdana or generate 3.55% 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. Mitrabara Adiperdana PT
Performance |
Timeline |
Bank Ina Perdana |
Mitrabara Adiperdana |
Bank Ina and Mitrabara Adiperdana Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Ina and Mitrabara Adiperdana
The main advantage of trading using opposite Bank Ina and Mitrabara Adiperdana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ina position performs unexpectedly, Mitrabara Adiperdana 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 Mitrabara Adiperdana will offset losses from the drop in Mitrabara Adiperdana's long position.Bank Ina vs. Paninvest Tbk | Bank Ina vs. Maskapai Reasuransi Indonesia | Bank Ina vs. Panin Sekuritas Tbk | Bank Ina vs. Wahana Ottomitra Multiartha |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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