Correlation Between PT Bank and AgileThought
Can any of the company-specific risk be diversified away by investing in both PT Bank and AgileThought 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 AgileThought 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 AgileThought, you can compare the effects of market volatilities on PT Bank and AgileThought 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 AgileThought. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and AgileThought.
Diversification Opportunities for PT Bank and AgileThought
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKRKF and AgileThought is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought 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 AgileThought. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgileThought has no effect on the direction of PT Bank i.e., PT Bank and AgileThought go up and down completely randomly.
Pair Corralation between PT Bank and AgileThought
If you would invest 103.00 in AgileThought on September 2, 2024 and sell it today you would earn a total of 0.00 from holding AgileThought or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Bank Rakyat vs. AgileThought
Performance |
| Timeline |
| PT Bank Rakyat |
| AgileThought |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and AgileThought Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and AgileThought
The main advantage of trading using opposite PT Bank and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, AgileThought 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 AgileThought will offset losses from the drop in AgileThought's long position.The idea behind PT Bank Rakyat and AgileThought pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AgileThought vs. Genpact Limited | AgileThought vs. ExlService Holdings | AgileThought vs. Science Applications International | AgileThought vs. CLARIVATE PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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