Correlation Between PT Bank and Goliath Film
Can any of the company-specific risk be diversified away by investing in both PT Bank and Goliath Film 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 Goliath Film 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 Goliath Film and, you can compare the effects of market volatilities on PT Bank and Goliath Film 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 Goliath Film. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Goliath Film.
Diversification Opportunities for PT Bank and Goliath Film
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKRKF and Goliath is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Goliath Film and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goliath Film 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 Goliath Film. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goliath Film has no effect on the direction of PT Bank i.e., PT Bank and Goliath Film go up and down completely randomly.
Pair Corralation between PT Bank and Goliath Film
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 0.82 times more return on investment than Goliath Film. However, PT Bank Rakyat is 1.22 times less risky than Goliath Film. It trades about 0.03 of its potential returns per unit of risk. Goliath Film and is currently generating about 0.01 per unit of risk. If you would invest 25.00 in PT Bank Rakyat on September 1, 2024 and sell it today you would earn a total of 0.00 from holding PT Bank Rakyat or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
PT Bank Rakyat vs. Goliath Film and
Performance |
| Timeline |
| PT Bank Rakyat |
| Goliath Film |
PT Bank and Goliath Film Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Goliath Film
The main advantage of trading using opposite PT Bank and Goliath Film positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Goliath Film 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 Goliath Film will offset losses from the drop in Goliath Film'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 |
| Goliath Film vs. HUMANA INC | Goliath Film vs. Aquagold International | Goliath Film vs. Barloworld Ltd ADR | Goliath Film vs. Thrivent High Yield |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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