Correlation Between PT Bank and Aslan Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both PT Bank and Aslan Pharmaceuticals 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 Aslan Pharmaceuticals 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 Aslan Pharmaceuticals, you can compare the effects of market volatilities on PT Bank and Aslan Pharmaceuticals 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 Aslan Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Aslan Pharmaceuticals.
Diversification Opportunities for PT Bank and Aslan Pharmaceuticals
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKRKF and Aslan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Aslan Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aslan Pharmaceuticals 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 Aslan Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aslan Pharmaceuticals has no effect on the direction of PT Bank i.e., PT Bank and Aslan Pharmaceuticals go up and down completely randomly.
Pair Corralation between PT Bank and Aslan Pharmaceuticals
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 0.36 times more return on investment than Aslan Pharmaceuticals. However, PT Bank Rakyat is 2.75 times less risky than Aslan Pharmaceuticals. It trades about 0.02 of its potential returns per unit of risk. Aslan Pharmaceuticals is currently generating about -0.03 per unit of risk. If you would invest 29.00 in PT Bank Rakyat on September 1, 2024 and sell it today you would lose (4.00) from holding PT Bank Rakyat or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.11% |
| Values | Daily Returns |
PT Bank Rakyat vs. Aslan Pharmaceuticals
Performance |
| Timeline |
| PT Bank Rakyat |
| Aslan Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Aslan Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Aslan Pharmaceuticals
The main advantage of trading using opposite PT Bank and Aslan Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Aslan Pharmaceuticals 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 Aslan Pharmaceuticals will offset losses from the drop in Aslan Pharmaceuticals' 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 |
| Aslan Pharmaceuticals vs. Monte Rosa Therapeutics | Aslan Pharmaceuticals vs. NewAmsterdam Pharma | Aslan Pharmaceuticals vs. Inventiva Sa | Aslan Pharmaceuticals vs. Cullinan Oncology LLC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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