Correlation Between PT Bank and Atlantic Union
Can any of the company-specific risk be diversified away by investing in both PT Bank and Atlantic Union 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 Atlantic Union 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 Atlantic Union Bankshares, you can compare the effects of market volatilities on PT Bank and Atlantic Union 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 Atlantic Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Atlantic Union.
Diversification Opportunities for PT Bank and Atlantic Union
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKRKF and Atlantic is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Atlantic Union Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Union Bankshares 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 Atlantic Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Union Bankshares has no effect on the direction of PT Bank i.e., PT Bank and Atlantic Union go up and down completely randomly.
Pair Corralation between PT Bank and Atlantic Union
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 8.5 times more return on investment than Atlantic Union. However, PT Bank is 8.5 times more volatile than Atlantic Union Bankshares. It trades about 0.06 of its potential returns per unit of risk. Atlantic Union Bankshares is currently generating about -0.08 per unit of risk. If you would invest 28.00 in PT Bank Rakyat on September 12, 2024 and sell it today you would earn a total of 1.00 from holding PT Bank Rakyat or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Atlantic Union Bankshares
Performance |
| Timeline |
| PT Bank Rakyat |
| Atlantic Union Bankshares |
PT Bank and Atlantic Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Atlantic Union
The main advantage of trading using opposite PT Bank and Atlantic Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Atlantic Union 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 Atlantic Union will offset losses from the drop in Atlantic Union'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 |
| Atlantic Union vs. Zane Interactive Publishing | Atlantic Union vs. WEBTOON Entertainment Common | Atlantic Union vs. Udemy Inc | Atlantic Union vs. AMREP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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