Correlation Between Bank Central and Cibl
Can any of the company-specific risk be diversified away by investing in both Bank Central and Cibl 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 Central and Cibl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Cibl Inc, you can compare the effects of market volatilities on Bank Central and Cibl 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 Central with a short position of Cibl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Cibl.
Diversification Opportunities for Bank Central and Cibl
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Cibl is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Cibl Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibl Inc and Bank Central 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 Central Asia are associated (or correlated) with Cibl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibl Inc has no effect on the direction of Bank Central i.e., Bank Central and Cibl go up and down completely randomly.
Pair Corralation between Bank Central and Cibl
Assuming the 90 days horizon Bank Central Asia is expected to under-perform the Cibl. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 1.23 times less risky than Cibl. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Cibl Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 180,000 in Cibl Inc on September 13, 2024 and sell it today you would lose (5,025) from holding Cibl Inc or give up 2.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Central Asia vs. Cibl Inc
Performance |
Timeline |
Bank Central Asia |
Cibl Inc |
Bank Central and Cibl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Central and Cibl
The main advantage of trading using opposite Bank Central and Cibl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Cibl 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 Cibl will offset losses from the drop in Cibl's long position.Bank Central vs. PT Bank Rakyat | Bank Central vs. Morningstar Unconstrained Allocation | Bank Central vs. Bondbloxx ETF Trust | Bank Central vs. Spring Valley Acquisition |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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