Correlation Between Merdeka Copper and Bank Qnb
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Bank Qnb 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 Merdeka Copper and Bank Qnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merdeka Copper Gold and Bank Qnb Indonesia, you can compare the effects of market volatilities on Merdeka Copper and Bank Qnb 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 Merdeka Copper with a short position of Bank Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Bank Qnb.
Diversification Opportunities for Merdeka Copper and Bank Qnb
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Merdeka and Bank is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Bank Qnb Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Qnb Indonesia and Merdeka Copper 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 Merdeka Copper Gold are associated (or correlated) with Bank Qnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Qnb Indonesia has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Bank Qnb go up and down completely randomly.
Pair Corralation between Merdeka Copper and Bank Qnb
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to generate 1.57 times more return on investment than Bank Qnb. However, Merdeka Copper is 1.57 times more volatile than Bank Qnb Indonesia. It trades about -0.08 of its potential returns per unit of risk. Bank Qnb Indonesia is currently generating about -0.29 per unit of risk. If you would invest 184,000 in Merdeka Copper Gold on December 1, 2024 and sell it today you would lose (42,000) from holding Merdeka Copper Gold or give up 22.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Merdeka Copper Gold vs. Bank Qnb Indonesia
Performance |
Timeline |
Merdeka Copper Gold |
Bank Qnb Indonesia |
Merdeka Copper and Bank Qnb Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Merdeka Copper and Bank Qnb
The main advantage of trading using opposite Merdeka Copper and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Bank Qnb 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 Qnb will offset losses from the drop in Bank Qnb's long position.Merdeka Copper vs. PT Sarana Menara | Merdeka Copper vs. Tower Bersama Infrastructure | Merdeka Copper vs. Pabrik Kertas Tjiwi | Merdeka Copper vs. Mitra Keluarga Karyasehat |
Bank Qnb vs. Bank Victoria International | Bank Qnb vs. Bank Mnc Internasional | Bank Qnb vs. Bank Bumi Arta | Bank Qnb vs. Bank Capital 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Equity Valuation Check real value of public entities based on technical and fundamental data |