Correlation Between PT Bank and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both PT Bank and Eagle Financial 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 Eagle Financial 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 Eagle Financial Services, you can compare the effects of market volatilities on PT Bank and Eagle Financial 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 Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Eagle Financial.
Diversification Opportunities for PT Bank and Eagle Financial
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and Eagle is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Eagle Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Services 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 Eagle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Financial Services has no effect on the direction of PT Bank i.e., PT Bank and Eagle Financial go up and down completely randomly.
Pair Corralation between PT Bank and Eagle Financial
Assuming the 90 days horizon PT Bank is expected to generate 13.55 times less return on investment than Eagle Financial. In addition to that, PT Bank is 4.11 times more volatile than Eagle Financial Services. It trades about 0.0 of its total potential returns per unit of risk. Eagle Financial Services is currently generating about 0.09 per unit of volatility. If you would invest 2,914 in Eagle Financial Services on September 1, 2024 and sell it today you would earn a total of 636.00 from holding Eagle Financial Services or generate 21.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.78% |
| Values | Daily Returns |
PT Bank Rakyat vs. Eagle Financial Services
Performance |
| Timeline |
| PT Bank Rakyat |
| Eagle Financial Services |
PT Bank and Eagle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Eagle Financial
The main advantage of trading using opposite PT Bank and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Eagle Financial 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 Eagle Financial will offset losses from the drop in Eagle Financial'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 |
| Eagle Financial vs. Chesapeake Finl Shs | Eagle Financial vs. Taylor Calvin B | Eagle Financial vs. PSB Holdings | Eagle Financial vs. Farmers Merchants Bancorp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |