Correlation Between PT Bank and ACS Actividades
Can any of the company-specific risk be diversified away by investing in both PT Bank and ACS Actividades 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 PT Bank and ACS Actividades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and ACS Actividades de, you can compare the effects of market volatilities on PT Bank and ACS Actividades 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 PT Bank with a short position of ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and ACS Actividades.
Diversification Opportunities for PT Bank and ACS Actividades
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and ACS is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and ACS Actividades de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACS Actividades de and PT Bank 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 PT Bank Rakyat are associated (or correlated) with ACS Actividades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACS Actividades de has no effect on the direction of PT Bank i.e., PT Bank and ACS Actividades go up and down completely randomly.
Pair Corralation between PT Bank and ACS Actividades
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 50.44 times more return on investment than ACS Actividades. However, PT Bank is 50.44 times more volatile than ACS Actividades de. It trades about 0.01 of its potential returns per unit of risk. ACS Actividades de is currently generating about 0.22 per unit of risk. If you would invest 26.00 in PT Bank Rakyat on September 1, 2024 and sell it today you would lose (1.00) from holding PT Bank Rakyat or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. ACS Actividades de
Performance |
| Timeline |
| PT Bank Rakyat |
| ACS Actividades de |
PT Bank and ACS Actividades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and ACS Actividades
The main advantage of trading using opposite PT Bank and ACS Actividades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, ACS Actividades 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 ACS Actividades will offset losses from the drop in ACS Actividades' long position.| PT Bank vs. Piraeus Bank SA | PT Bank vs. Turkiye Garanti Bankasi | PT Bank vs. Delhi Bank Corp | PT Bank vs. Uwharrie Capital Corp |
| ACS Actividades vs. Orion Group Holdings | ACS Actividades vs. Agrify Corp | ACS Actividades vs. Matrix Service Co | ACS Actividades vs. MYR Group |
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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