Correlation Between PT Bank and China Shenhua
Can any of the company-specific risk be diversified away by investing in both PT Bank and China Shenhua 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 China Shenhua 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 China Shenhua Energy, you can compare the effects of market volatilities on PT Bank and China Shenhua 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 China Shenhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and China Shenhua.
Diversification Opportunities for PT Bank and China Shenhua
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between BKRKF and China is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and China Shenhua Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shenhua Energy 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 China Shenhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shenhua Energy has no effect on the direction of PT Bank i.e., PT Bank and China Shenhua go up and down completely randomly.
Pair Corralation between PT Bank and China Shenhua
If you would invest 455.00 in China Shenhua Energy on November 9, 2024 and sell it today you would earn a total of 0.00 from holding China Shenhua Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. China Shenhua Energy
Performance |
| Timeline |
| PT Bank Rakyat |
| China Shenhua Energy |
PT Bank and China Shenhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and China Shenhua
The main advantage of trading using opposite PT Bank and China Shenhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, China Shenhua 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 China Shenhua will offset losses from the drop in China Shenhua'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 |
| China Shenhua vs. Bukit Asam Tbk | China Shenhua vs. Indo Tambangraya Megah | China Shenhua vs. Thungela Resources Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stocks Directory Find actively traded stocks across global markets |