Correlation Between PT Bank and Concrete Leveling
Can any of the company-specific risk be diversified away by investing in both PT Bank and Concrete Leveling 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 Concrete Leveling 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 Concrete Leveling Systems, you can compare the effects of market volatilities on PT Bank and Concrete Leveling 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 Concrete Leveling. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Concrete Leveling.
Diversification Opportunities for PT Bank and Concrete Leveling
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and Concrete is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Concrete Leveling Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Leveling Systems 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 Concrete Leveling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Leveling Systems has no effect on the direction of PT Bank i.e., PT Bank and Concrete Leveling go up and down completely randomly.
Pair Corralation between PT Bank and Concrete Leveling
Assuming the 90 days horizon PT Bank is expected to generate 64.81 times less return on investment than Concrete Leveling. But when comparing it to its historical volatility, PT Bank Rakyat is 3.1 times less risky than Concrete Leveling. It trades about 0.01 of its potential returns per unit of risk. Concrete Leveling Systems is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Concrete Leveling Systems on September 1, 2024 and sell it today you would earn a total of 43.00 from holding Concrete Leveling Systems or generate 204.76% 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. Concrete Leveling Systems
Performance |
| Timeline |
| PT Bank Rakyat |
| Concrete Leveling Systems |
PT Bank and Concrete Leveling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Concrete Leveling
The main advantage of trading using opposite PT Bank and Concrete Leveling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Concrete Leveling 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 Concrete Leveling will offset losses from the drop in Concrete Leveling'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 |
| Concrete Leveling vs. American Premium Water | Concrete Leveling vs. Arts Way Manufacturing Co | Concrete Leveling vs. Astec Industries | Concrete Leveling vs. Alamo Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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