Correlation Between PT Bank and Forbion European
Can any of the company-specific risk be diversified away by investing in both PT Bank and Forbion European 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 Forbion European 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 Forbion European Acquisition, you can compare the effects of market volatilities on PT Bank and Forbion European 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 Forbion European. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Forbion European.
Diversification Opportunities for PT Bank and Forbion European
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and Forbion is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Forbion European Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forbion European Acq 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 Forbion European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forbion European Acq has no effect on the direction of PT Bank i.e., PT Bank and Forbion European go up and down completely randomly.
Pair Corralation between PT Bank and Forbion European
If you would invest 33.00 in PT Bank Rakyat on September 3, 2024 and sell it today you would lose (9.00) from holding PT Bank Rakyat or give up 27.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.43% |
| Values | Daily Returns |
PT Bank Rakyat vs. Forbion European Acquisition
Performance |
| Timeline |
| PT Bank Rakyat |
| Forbion European Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Forbion European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Forbion European
The main advantage of trading using opposite PT Bank and Forbion European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Forbion European 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 Forbion European will offset losses from the drop in Forbion European'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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