Correlation Between PT Bank and Bank Utica
Can any of the company-specific risk be diversified away by investing in both PT Bank and Bank Utica 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 Bank Utica 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 Bank Utica Ny, you can compare the effects of market volatilities on PT Bank and Bank Utica 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 Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Bank Utica.
Diversification Opportunities for PT Bank and Bank Utica
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and Bank is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Bank Utica Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Utica Ny 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 Bank Utica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Utica Ny has no effect on the direction of PT Bank i.e., PT Bank and Bank Utica go up and down completely randomly.
Pair Corralation between PT Bank and Bank Utica
Assuming the 90 days horizon PT Bank is expected to generate 1.9 times less return on investment than Bank Utica. In addition to that, PT Bank is 2.67 times more volatile than Bank Utica Ny. It trades about 0.02 of its total potential returns per unit of risk. Bank Utica Ny is currently generating about 0.08 per unit of volatility. If you would invest 33,399 in Bank Utica Ny on September 14, 2024 and sell it today you would earn a total of 17,601 from holding Bank Utica Ny or generate 52.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.21% |
| Values | Daily Returns |
PT Bank Rakyat vs. Bank Utica Ny
Performance |
| Timeline |
| PT Bank Rakyat |
| Bank Utica Ny |
PT Bank and Bank Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Bank Utica
The main advantage of trading using opposite PT Bank and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Bank Utica 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 Bank Utica will offset losses from the drop in Bank Utica'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 |
| Bank Utica vs. PT Bank Rakyat | Bank Utica vs. Morningstar Unconstrained Allocation | Bank Utica vs. Bondbloxx ETF Trust | Bank Utica vs. Spring Valley Acquisition |
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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