Correlation Between EVS Broadcast and PT Bank
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and PT Bank 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 EVS Broadcast and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and PT Bank Mandiri, you can compare the effects of market volatilities on EVS Broadcast and PT Bank 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 EVS Broadcast with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and PT Bank.
Diversification Opportunities for EVS Broadcast and PT Bank
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EVS and PQ9 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and PT Bank Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Mandiri and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Mandiri has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and PT Bank go up and down completely randomly.
Pair Corralation between EVS Broadcast and PT Bank
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 0.25 times more return on investment than PT Bank. However, EVS Broadcast Equipment is 3.97 times less risky than PT Bank. It trades about 0.21 of its potential returns per unit of risk. PT Bank Mandiri is currently generating about -0.01 per unit of risk. If you would invest 2,950 in EVS Broadcast Equipment on October 11, 2024 and sell it today you would earn a total of 125.00 from holding EVS Broadcast Equipment or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. PT Bank Mandiri
Performance |
| Timeline |
| EVS Broadcast Equipment |
| PT Bank Mandiri |
EVS Broadcast and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and PT Bank
The main advantage of trading using opposite EVS Broadcast and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| EVS Broadcast vs. OBSERVE MEDICAL ASA | EVS Broadcast vs. Advanced Medical Solutions | EVS Broadcast vs. MeVis Medical Solutions | EVS Broadcast vs. PKSHA TECHNOLOGY INC |
| PT Bank vs. Nishi Nippon Railroad Co | PT Bank vs. COVIVIO HOTELS INH | PT Bank vs. EVS Broadcast Equipment | PT Bank vs. Pebblebrook Hotel Trust |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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