Correlation Between Bank Rakyat and PT Carsurin
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and PT Carsurin 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 Rakyat and PT Carsurin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat Indonesia and PT Carsurin Tbk, you can compare the effects of market volatilities on Bank Rakyat and PT Carsurin 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 Rakyat with a short position of PT Carsurin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and PT Carsurin.
Diversification Opportunities for Bank Rakyat and PT Carsurin
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and CRSN is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat Indonesia and PT Carsurin Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Carsurin Tbk and Bank Rakyat 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 Rakyat Indonesia are associated (or correlated) with PT Carsurin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Carsurin Tbk has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and PT Carsurin go up and down completely randomly.
Pair Corralation between Bank Rakyat and PT Carsurin
Assuming the 90 days trading horizon Bank Rakyat Indonesia is expected to under-perform the PT Carsurin. But the stock apears to be less risky and, when comparing its historical volatility, Bank Rakyat Indonesia is 1.06 times less risky than PT Carsurin. The stock trades about -0.05 of its potential returns per unit of risk. The PT Carsurin Tbk is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 10,600 in PT Carsurin Tbk on October 25, 2024 and sell it today you would lose (100.00) from holding PT Carsurin Tbk or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Rakyat Indonesia vs. PT Carsurin Tbk
Performance |
| Timeline |
| Bank Rakyat Indonesia |
| PT Carsurin Tbk |
Bank Rakyat and PT Carsurin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and PT Carsurin
The main advantage of trading using opposite Bank Rakyat and PT Carsurin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, PT Carsurin 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 Carsurin will offset losses from the drop in PT Carsurin's long position.| Bank Rakyat vs. Bank Central Asia | Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Bank Negara Indonesia | Bank Rakyat vs. Telkom Indonesia Tbk |
| PT Carsurin vs. Bank Central Asia | PT Carsurin vs. Bank Rakyat Indonesia | PT Carsurin vs. Bayan Resources Tbk | PT Carsurin vs. Bank Mandiri Persero |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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