Correlation Between PT Bank and FIBRA Macquarie
Can any of the company-specific risk be diversified away by investing in both PT Bank and FIBRA Macquarie 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 FIBRA Macquarie 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 FIBRA Macquarie Mxico, you can compare the effects of market volatilities on PT Bank and FIBRA Macquarie 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 FIBRA Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and FIBRA Macquarie.
Diversification Opportunities for PT Bank and FIBRA Macquarie
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and FIBRA is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and FIBRA Macquarie Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Macquarie Mxico 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 FIBRA Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Macquarie Mxico has no effect on the direction of PT Bank i.e., PT Bank and FIBRA Macquarie go up and down completely randomly.
Pair Corralation between PT Bank and FIBRA Macquarie
Assuming the 90 days horizon PT Bank Rakyat is expected to under-perform the FIBRA Macquarie. In addition to that, PT Bank is 1.77 times more volatile than FIBRA Macquarie Mxico. It trades about -0.08 of its total potential returns per unit of risk. FIBRA Macquarie Mxico is currently generating about -0.02 per unit of volatility. If you would invest 162.00 in FIBRA Macquarie Mxico on September 3, 2024 and sell it today you would lose (5.00) from holding FIBRA Macquarie Mxico or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. FIBRA Macquarie Mxico
Performance |
| Timeline |
| PT Bank Rakyat |
| FIBRA Macquarie Mxico |
PT Bank and FIBRA Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and FIBRA Macquarie
The main advantage of trading using opposite PT Bank and FIBRA Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, FIBRA Macquarie 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 FIBRA Macquarie will offset losses from the drop in FIBRA Macquarie'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 |
| FIBRA Macquarie vs. Palo Alto Networks | FIBRA Macquarie vs. Singular Genomics Systems | FIBRA Macquarie vs. BlackRock | FIBRA Macquarie vs. Deckers Outdoor |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |