Correlation Between PT Bank and FineMark Holdings
Can any of the company-specific risk be diversified away by investing in both PT Bank and FineMark Holdings 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 FineMark Holdings 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 FineMark Holdings, you can compare the effects of market volatilities on PT Bank and FineMark Holdings 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 FineMark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and FineMark Holdings.
Diversification Opportunities for PT Bank and FineMark Holdings
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and FineMark is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and FineMark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FineMark Holdings 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 FineMark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FineMark Holdings has no effect on the direction of PT Bank i.e., PT Bank and FineMark Holdings go up and down completely randomly.
Pair Corralation between PT Bank and FineMark Holdings
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 13.99 times more return on investment than FineMark Holdings. However, PT Bank is 13.99 times more volatile than FineMark Holdings. It trades about 0.06 of its potential returns per unit of risk. FineMark Holdings is currently generating about -0.1 per unit of risk. If you would invest 28.00 in PT Bank Rakyat on September 13, 2024 and sell it today you would earn a total of 1.00 from holding PT Bank Rakyat or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. FineMark Holdings
Performance |
| Timeline |
| PT Bank Rakyat |
| FineMark Holdings |
PT Bank and FineMark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and FineMark Holdings
The main advantage of trading using opposite PT Bank and FineMark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, FineMark Holdings 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 FineMark Holdings will offset losses from the drop in FineMark Holdings' long position.| PT Bank vs. Morningstar Unconstrained Allocation | PT Bank vs. Bondbloxx ETF Trust | PT Bank vs. Spring Valley Acquisition | PT Bank vs. Bondbloxx ETF Trust |
| FineMark Holdings vs. Huntington Bancshares Incorporated | FineMark Holdings vs. KeyCorp | FineMark Holdings vs. Citizens Financial Group, | FineMark Holdings vs. Western Alliance Bancorporation |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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