Correlation Between PT Bank and ImagineAR
Can any of the company-specific risk be diversified away by investing in both PT Bank and ImagineAR 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 ImagineAR 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 ImagineAR, you can compare the effects of market volatilities on PT Bank and ImagineAR 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 ImagineAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and ImagineAR.
Diversification Opportunities for PT Bank and ImagineAR
Pay attention - limited upside
The 3 months correlation between BKRKF and ImagineAR is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and ImagineAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImagineAR 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 ImagineAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImagineAR has no effect on the direction of PT Bank i.e., PT Bank and ImagineAR go up and down completely randomly.
Pair Corralation between PT Bank and ImagineAR
Assuming the 90 days horizon PT Bank is expected to generate 20.05 times less return on investment than ImagineAR. But when comparing it to its historical volatility, PT Bank Rakyat is 2.13 times less risky than ImagineAR. It trades about 0.01 of its potential returns per unit of risk. ImagineAR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3.24 in ImagineAR on August 31, 2024 and sell it today you would earn a total of 3.58 from holding ImagineAR or generate 110.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.67% |
| Values | Daily Returns |
PT Bank Rakyat vs. ImagineAR
Performance |
| Timeline |
| PT Bank Rakyat |
| ImagineAR |
PT Bank and ImagineAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and ImagineAR
The main advantage of trading using opposite PT Bank and ImagineAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, ImagineAR 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 ImagineAR will offset losses from the drop in ImagineAR'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 |
| ImagineAR vs. Zerify Inc | ImagineAR vs. Smartmetric | ImagineAR vs. World Health Energy | ImagineAR vs. Plyzer Technologies |
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 CEOs Directory module to screen CEOs from public companies around the world.
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