Correlation Between PT Bank and INFICON Holding
Can any of the company-specific risk be diversified away by investing in both PT Bank and INFICON Holding 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 INFICON Holding 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 INFICON Holding AG, you can compare the effects of market volatilities on PT Bank and INFICON Holding 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 INFICON Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and INFICON Holding.
Diversification Opportunities for PT Bank and INFICON Holding
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and INFICON is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and INFICON Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFICON Holding AG 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 INFICON Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFICON Holding AG has no effect on the direction of PT Bank i.e., PT Bank and INFICON Holding go up and down completely randomly.
Pair Corralation between PT Bank and INFICON Holding
If you would invest 126,000 in INFICON Holding AG on September 4, 2024 and sell it today you would earn a total of 0.00 from holding INFICON Holding AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. INFICON Holding AG
Performance |
| Timeline |
| PT Bank Rakyat |
| INFICON Holding AG |
PT Bank and INFICON Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and INFICON Holding
The main advantage of trading using opposite PT Bank and INFICON Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, INFICON Holding 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 INFICON Holding will offset losses from the drop in INFICON Holding's long position.| PT Bank vs. First Hawaiian | PT Bank vs. Central Pacific Financial | PT Bank vs. Territorial Bancorp | PT Bank vs. Comerica |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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