Correlation Between PT Bank and Grom Social
Can any of the company-specific risk be diversified away by investing in both PT Bank and Grom Social 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 Grom Social 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 Grom Social Enterprises, you can compare the effects of market volatilities on PT Bank and Grom Social 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 Grom Social. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Grom Social.
Diversification Opportunities for PT Bank and Grom Social
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and Grom is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Grom Social Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grom Social Enterprises 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 Grom Social. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grom Social Enterprises has no effect on the direction of PT Bank i.e., PT Bank and Grom Social go up and down completely randomly.
Pair Corralation between PT Bank and Grom Social
If you would invest 1.00 in Grom Social Enterprises on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Grom Social Enterprises or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.69% |
| Values | Daily Returns |
PT Bank Rakyat vs. Grom Social Enterprises
Performance |
| Timeline |
| PT Bank Rakyat |
| Grom Social Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Grom Social Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Grom Social
The main advantage of trading using opposite PT Bank and Grom Social positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Grom Social 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 Grom Social will offset losses from the drop in Grom Social'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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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