Correlation Between Yulie Sekurindo and Bank Mnc
Can any of the company-specific risk be diversified away by investing in both Yulie Sekurindo 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 Yulie Sekurindo and Bank Mnc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yulie Sekurindo Tbk and Bank Mnc Internasional, you can compare the effects of market volatilities on Yulie Sekurindo 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 Yulie Sekurindo with a short position of Bank Mnc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulie Sekurindo and Bank Mnc.
Diversification Opportunities for Yulie Sekurindo and Bank Mnc
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yulie and Bank is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Yulie Sekurindo Tbk 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 Yulie Sekurindo 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 Yulie Sekurindo Tbk 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 Yulie Sekurindo i.e., Yulie Sekurindo and Bank Mnc go up and down completely randomly.
Pair Corralation between Yulie Sekurindo and Bank Mnc
Assuming the 90 days trading horizon Yulie Sekurindo Tbk is expected to generate 0.22 times more return on investment than Bank Mnc. However, Yulie Sekurindo Tbk is 4.45 times less risky than Bank Mnc. It trades about 0.0 of its potential returns per unit of risk. Bank Mnc Internasional is currently generating about -0.28 per unit of risk. If you would invest 270,000 in Yulie Sekurindo Tbk on November 21, 2024 and sell it today you would earn a total of 0.00 from holding Yulie Sekurindo 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 |
Yulie Sekurindo Tbk vs. Bank Mnc Internasional
Performance |
Timeline |
Yulie Sekurindo Tbk |
Bank Mnc Internasional |
Yulie Sekurindo and Bank Mnc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yulie Sekurindo and Bank Mnc
The main advantage of trading using opposite Yulie Sekurindo and Bank Mnc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulie Sekurindo 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.Yulie Sekurindo vs. Trimegah Securities Tbk | ||
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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