Correlation Between Bank Artha and Bank Victoria
Can any of the company-specific risk be diversified away by investing in both Bank Artha and Bank Victoria 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 Artha and Bank Victoria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Artha Graha and Bank Victoria International, you can compare the effects of market volatilities on Bank Artha and Bank Victoria 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 Artha with a short position of Bank Victoria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Artha and Bank Victoria.
Diversification Opportunities for Bank Artha and Bank Victoria
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Bank is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bank Artha Graha and Bank Victoria International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Victoria Intern and Bank Artha 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 Artha Graha are associated (or correlated) with Bank Victoria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Victoria Intern has no effect on the direction of Bank Artha i.e., Bank Artha and Bank Victoria go up and down completely randomly.
Pair Corralation between Bank Artha and Bank Victoria
Assuming the 90 days trading horizon Bank Artha Graha is expected to generate 3.78 times more return on investment than Bank Victoria. However, Bank Artha is 3.78 times more volatile than Bank Victoria International. It trades about 0.47 of its potential returns per unit of risk. Bank Victoria International is currently generating about 0.12 per unit of risk. If you would invest 13,600 in Bank Artha Graha on September 13, 2024 and sell it today you would earn a total of 30,000 from holding Bank Artha Graha or generate 220.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Artha Graha vs. Bank Victoria International
Performance |
Timeline |
Bank Artha Graha |
Bank Victoria Intern |
Bank Artha and Bank Victoria Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Artha and Bank Victoria
The main advantage of trading using opposite Bank Artha and Bank Victoria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Artha position performs unexpectedly, Bank Victoria 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 Victoria will offset losses from the drop in Bank Victoria's long position.Bank Artha vs. Bank Victoria International | Bank Artha vs. Bank Bumi Arta | Bank Artha vs. Bank Mnc Internasional | Bank Artha vs. Bank Qnb 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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