Correlation Between Superior Plus and PT Bank
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and PT Bank Central, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and PT Bank.
Diversification Opportunities for Superior Plus and PT Bank
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Superior and BZG2 is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and PT Bank Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Central and Superior Plus 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 Superior Plus Corp 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 Central has no effect on the direction of Superior Plus i.e., Superior Plus and PT Bank go up and down completely randomly.
Pair Corralation between Superior Plus and PT Bank
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the PT Bank. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 2.07 times less risky than PT Bank. The stock trades about -0.06 of its potential returns per unit of risk. The PT Bank Central is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 57.00 in PT Bank Central on November 3, 2024 and sell it today you would earn a total of 0.00 from holding PT Bank Central or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. PT Bank Central
Performance |
| Timeline |
| Superior Plus Corp |
| PT Bank Central |
Superior Plus and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and PT Bank
The main advantage of trading using opposite Superior Plus and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. United Breweries Co | Superior Plus vs. National Beverage Corp | Superior Plus vs. China Resources Beer | Superior Plus vs. SAN MIGUEL BREWERY |
| PT Bank vs. Air Lease | PT Bank vs. Zoom Video Communications | PT Bank vs. FUYO GENERAL LEASE | PT Bank vs. Sixt Leasing SE |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |