Correlation Between PT Bank and G Medical
Can any of the company-specific risk be diversified away by investing in both PT Bank and G Medical 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 G Medical 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 G Medical Innovations, you can compare the effects of market volatilities on PT Bank and G Medical 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 G Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and G Medical.
Diversification Opportunities for PT Bank and G Medical
Pay attention - limited upside
The 3 months correlation between BKRKF and GMVDW is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations 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 G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of PT Bank i.e., PT Bank and G Medical go up and down completely randomly.
Pair Corralation between PT Bank and G Medical
Assuming the 90 days horizon PT Bank is expected to generate 56.67 times less return on investment than G Medical. But when comparing it to its historical volatility, PT Bank Rakyat is 11.82 times less risky than G Medical. It trades about 0.03 of its potential returns per unit of risk. G Medical Innovations is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 171.00 in G Medical Innovations on September 1, 2024 and sell it today you would earn a total of 230.00 from holding G Medical Innovations or generate 134.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.37% |
| Values | Daily Returns |
PT Bank Rakyat vs. G Medical Innovations
Performance |
| Timeline |
| PT Bank Rakyat |
| G Medical Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and G Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and G Medical
The main advantage of trading using opposite PT Bank and G Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, G Medical 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 G Medical will offset losses from the drop in G Medical'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 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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