Correlation Between PT Bank and CF Acquisition
Can any of the company-specific risk be diversified away by investing in both PT Bank and CF Acquisition 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 CF Acquisition 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 CF Acquisition Corp, you can compare the effects of market volatilities on PT Bank and CF Acquisition 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 CF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and CF Acquisition.
Diversification Opportunities for PT Bank and CF Acquisition
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and CFIVU is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and CF Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Acquisition Corp 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 CF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Acquisition Corp has no effect on the direction of PT Bank i.e., PT Bank and CF Acquisition go up and down completely randomly.
Pair Corralation between PT Bank and CF Acquisition
If you would invest 25.00 in PT Bank Rakyat on September 1, 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 | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
PT Bank Rakyat vs. CF Acquisition Corp
Performance |
| Timeline |
| PT Bank Rakyat |
| CF Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and CF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and CF Acquisition
The main advantage of trading using opposite PT Bank and CF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, CF Acquisition 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 CF Acquisition will offset losses from the drop in CF Acquisition's 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 |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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