Correlation Between PT Bank and Eiger Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both PT Bank and Eiger Biopharmaceutica 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 Eiger Biopharmaceutica 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 Eiger Biopharmaceuticals, you can compare the effects of market volatilities on PT Bank and Eiger Biopharmaceutica 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 Eiger Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Eiger Biopharmaceutica.
Diversification Opportunities for PT Bank and Eiger Biopharmaceutica
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKRKF and Eiger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Eiger Biopharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiger Biopharmaceuticals 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 Eiger Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiger Biopharmaceuticals has no effect on the direction of PT Bank i.e., PT Bank and Eiger Biopharmaceutica go up and down completely randomly.
Pair Corralation between PT Bank and Eiger Biopharmaceutica
If you would invest 22.00 in PT Bank Rakyat on November 27, 2024 and sell it today you would earn a total of 1.00 from holding PT Bank Rakyat or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Eiger Biopharmaceuticals
Performance |
| Timeline |
| PT Bank Rakyat |
| Eiger Biopharmaceuticals |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PT Bank and Eiger Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Eiger Biopharmaceutica
The main advantage of trading using opposite PT Bank and Eiger Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Eiger Biopharmaceutica 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 Eiger Biopharmaceutica will offset losses from the drop in Eiger Biopharmaceutica'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 |
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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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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