Correlation Between Bank Negara and CF Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Negara and CF Acquisition 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 Negara and CF Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Negara Indonesia and CF Acquisition IV, you can compare the effects of market volatilities on Bank Negara and CF Acquisition 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 Negara with a short position of CF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and CF Acquisition.
Diversification Opportunities for Bank Negara and CF Acquisition
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and CFIV is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and CF Acquisition IV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Acquisition IV and Bank Negara 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 Negara Indonesia are associated (or correlated) with CF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Acquisition IV has no effect on the direction of Bank Negara i.e., Bank Negara and CF Acquisition go up and down completely randomly.
Pair Corralation between Bank Negara and CF Acquisition
If you would invest 1,052 in CF Acquisition IV on September 17, 2024 and sell it today you would earn a total of 0.00 from holding CF Acquisition IV or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Bank Negara Indonesia vs. CF Acquisition IV
Performance |
Timeline |
Bank Negara Indonesia |
CF Acquisition IV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Negara and CF Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Negara and CF Acquisition
The main advantage of trading using opposite Bank Negara and CF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, CF Acquisition 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 CF Acquisition will offset losses from the drop in CF Acquisition's long position.Bank Negara vs. Morningstar Unconstrained Allocation | Bank Negara vs. Bondbloxx ETF Trust | Bank Negara vs. Spring Valley Acquisition | Bank Negara vs. Bondbloxx ETF Trust |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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