Correlation Between PT Bank and APT Satellite
Can any of the company-specific risk be diversified away by investing in both PT Bank and APT Satellite 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 APT Satellite 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 APT Satellite Holdings, you can compare the effects of market volatilities on PT Bank and APT Satellite 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 APT Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and APT Satellite.
Diversification Opportunities for PT Bank and APT Satellite
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and APT is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and APT Satellite Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Satellite Holdings 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 APT Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Satellite Holdings has no effect on the direction of PT Bank i.e., PT Bank and APT Satellite go up and down completely randomly.
Pair Corralation between PT Bank and APT Satellite
Assuming the 90 days horizon PT Bank is expected to generate 2.7 times less return on investment than APT Satellite. In addition to that, PT Bank is 2.54 times more volatile than APT Satellite Holdings. It trades about 0.02 of its total potential returns per unit of risk. APT Satellite Holdings is currently generating about 0.14 per unit of volatility. If you would invest 23.00 in APT Satellite Holdings on September 12, 2024 and sell it today you would earn a total of 5.00 from holding APT Satellite Holdings or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 27.24% |
| Values | Daily Returns |
PT Bank Rakyat vs. APT Satellite Holdings
Performance |
| Timeline |
| PT Bank Rakyat |
| APT Satellite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and APT Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and APT Satellite
The main advantage of trading using opposite PT Bank and APT Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, APT Satellite 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 APT Satellite will offset losses from the drop in APT Satellite's long position.| PT Bank vs. Morningstar Unconstrained Allocation | PT Bank vs. Bondbloxx ETF Trust | PT Bank vs. Spring Valley Acquisition | PT Bank vs. Bondbloxx ETF Trust |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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