Correlation Between PT Bank and Applied UV
Can any of the company-specific risk be diversified away by investing in both PT Bank and Applied UV 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 Applied UV 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 Applied UV, you can compare the effects of market volatilities on PT Bank and Applied UV 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 Applied UV. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Applied UV.
Diversification Opportunities for PT Bank and Applied UV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKRKF and Applied is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Applied UV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied UV 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 Applied UV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied UV has no effect on the direction of PT Bank i.e., PT Bank and Applied UV go up and down completely randomly.
Pair Corralation between PT Bank and Applied UV
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 0.64 times more return on investment than Applied UV. However, PT Bank Rakyat is 1.55 times less risky than Applied UV. It trades about 0.03 of its potential returns per unit of risk. Applied UV is currently generating about -0.19 per unit of risk. If you would invest 26.00 in PT Bank Rakyat on October 25, 2024 and sell it today you would lose (1.00) from holding PT Bank Rakyat or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 92.8% |
| Values | Daily Returns |
PT Bank Rakyat vs. Applied UV
Performance |
| Timeline |
| PT Bank Rakyat |
| Applied UV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Applied UV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Applied UV
The main advantage of trading using opposite PT Bank and Applied UV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Applied UV 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 Applied UV will offset losses from the drop in Applied UV'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 |
| Applied UV vs. FGI Industries | Applied UV vs. Aterian | Applied UV vs. Energy Focu | Applied UV vs. MasterBrand |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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