Correlation Between Bank Qnb and Bank Mnc
Can any of the company-specific risk be diversified away by investing in both Bank Qnb and Bank Mnc 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 Qnb and Bank Mnc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Qnb Indonesia and Bank Mnc Internasional, you can compare the effects of market volatilities on Bank Qnb and Bank Mnc 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 Qnb with a short position of Bank Mnc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Qnb and Bank Mnc.
Diversification Opportunities for Bank Qnb and Bank Mnc
Almost no diversification
The 3 months correlation between Bank and Bank is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bank Qnb Indonesia and Bank Mnc Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mnc Internasional and Bank Qnb 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 Qnb Indonesia are associated (or correlated) with Bank Mnc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mnc Internasional has no effect on the direction of Bank Qnb i.e., Bank Qnb and Bank Mnc go up and down completely randomly.
Pair Corralation between Bank Qnb and Bank Mnc
Assuming the 90 days trading horizon Bank Qnb Indonesia is expected to under-perform the Bank Mnc. In addition to that, Bank Qnb is 1.54 times more volatile than Bank Mnc Internasional. It trades about -0.29 of its total potential returns per unit of risk. Bank Mnc Internasional is currently generating about -0.13 per unit of volatility. If you would invest 5,800 in Bank Mnc Internasional on November 30, 2024 and sell it today you would lose (800.00) from holding Bank Mnc Internasional or give up 13.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Qnb Indonesia vs. Bank Mnc Internasional
Performance |
Timeline |
Bank Qnb Indonesia |
Bank Mnc Internasional |
Bank Qnb and Bank Mnc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Qnb and Bank Mnc
The main advantage of trading using opposite Bank Qnb and Bank Mnc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Qnb position performs unexpectedly, Bank Mnc 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 Mnc will offset losses from the drop in Bank Mnc's long position.Bank Qnb vs. Bank Victoria International | Bank Qnb vs. Bank Mnc Internasional | Bank Qnb vs. Bank Bumi Arta | Bank Qnb vs. Bank Capital Indonesia |
Bank Mnc vs. Bank Capital Indonesia | Bank Mnc vs. Bank Pembangunan Daerah | Bank Mnc vs. Bank Victoria International | Bank Mnc vs. Bank Qnb 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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