Correlation Between Bank Negara and Solidion Technology
Can any of the company-specific risk be diversified away by investing in both Bank Negara and Solidion Technology 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 Solidion Technology 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 Solidion Technology, you can compare the effects of market volatilities on Bank Negara and Solidion Technology 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 Solidion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Solidion Technology.
Diversification Opportunities for Bank Negara and Solidion Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Solidion is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology 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 Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of Bank Negara i.e., Bank Negara and Solidion Technology go up and down completely randomly.
Pair Corralation between Bank Negara and Solidion Technology
Assuming the 90 days horizon Bank Negara is expected to generate 25.2 times less return on investment than Solidion Technology. But when comparing it to its historical volatility, Bank Negara Indonesia is 6.32 times less risky than Solidion Technology. It trades about 0.03 of its potential returns per unit of risk. Solidion Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 475.00 in Solidion Technology on September 8, 2025 and sell it today you would earn a total of 364.00 from holding Solidion Technology or generate 76.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Negara Indonesia vs. Solidion Technology
Performance |
| Timeline |
| Bank Negara Indonesia |
| Solidion Technology |
Bank Negara and Solidion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Negara and Solidion Technology
The main advantage of trading using opposite Bank Negara and Solidion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, Solidion Technology 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 Solidion Technology will offset losses from the drop in Solidion Technology's long position.| Bank Negara vs. Kingsrose Mining Limited | Bank Negara vs. Costco Wholesale Corp | Bank Negara vs. Magna Mining | Bank Negara vs. Robinsons Retail Holdings |
| Solidion Technology vs. PDS Biotechnology Corp | Solidion Technology vs. Hemisphere Energy | Solidion Technology vs. Internet Gold Golden | Solidion Technology vs. Video Display |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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