Correlation Between PT Bank and CP ALL
Can any of the company-specific risk be diversified away by investing in both PT Bank and CP ALL 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 CP ALL 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 CP ALL Public, you can compare the effects of market volatilities on PT Bank and CP ALL 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 CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and CP ALL.
Diversification Opportunities for PT Bank and CP ALL
Very good diversification
The 3 months correlation between BKRKF and CVPBF is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public 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 CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of PT Bank i.e., PT Bank and CP ALL go up and down completely randomly.
Pair Corralation between PT Bank and CP ALL
Assuming the 90 days horizon PT Bank Rakyat is expected to under-perform the CP ALL. In addition to that, PT Bank is 1.34 times more volatile than CP ALL Public. It trades about -0.02 of its total potential returns per unit of risk. CP ALL Public is currently generating about 0.06 per unit of volatility. If you would invest 155.00 in CP ALL Public on September 3, 2024 and sell it today you would earn a total of 51.00 from holding CP ALL Public or generate 32.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.17% |
| Values | Daily Returns |
PT Bank Rakyat vs. CP ALL Public
Performance |
| Timeline |
| PT Bank Rakyat |
| CP ALL Public |
PT Bank and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and CP ALL
The main advantage of trading using opposite PT Bank and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL'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 |
| CP ALL vs. Western Asset Investment | CP ALL vs. Analog Devices | CP ALL vs. Arrow Electronics | CP ALL vs. MGIC Investment 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 CEOs Directory module to screen CEOs from public companies around the world.
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