Correlation Between PT Bank and ASM International
Can any of the company-specific risk be diversified away by investing in both PT Bank and ASM International 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 ASM International 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 ASM International NV, you can compare the effects of market volatilities on PT Bank and ASM International 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 ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and ASM International.
Diversification Opportunities for PT Bank and ASM International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and ASM is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International 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 ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of PT Bank i.e., PT Bank and ASM International go up and down completely randomly.
Pair Corralation between PT Bank and ASM International
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 2.26 times more return on investment than ASM International. However, PT Bank is 2.26 times more volatile than ASM International NV. It trades about 0.05 of its potential returns per unit of risk. ASM International NV is currently generating about 0.06 per unit of risk. If you would invest 22.00 in PT Bank Rakyat on November 5, 2024 and sell it today you would earn a total of 0.00 from holding PT Bank Rakyat or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. ASM International NV
Performance |
| Timeline |
| PT Bank Rakyat |
| ASM International |
PT Bank and ASM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and ASM International
The main advantage of trading using opposite PT Bank and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, ASM International 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 ASM International will offset losses from the drop in ASM International's long position.| PT Bank vs. Bank Mandiri Persero | PT Bank vs. Piraeus Bank SA | PT Bank vs. Eurobank Ergasias Services | PT Bank vs. Kasikornbank Public Co |
| ASM International vs. Lasertec | ASM International vs. Tokyo Electron | ASM International vs. Tokyo Electron Ltd | ASM International vs. BE Semiconductor Industries |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |