Correlation Between PT Bank and Janone
Can any of the company-specific risk be diversified away by investing in both PT Bank and Janone 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 Janone 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 Janone Inc, you can compare the effects of market volatilities on PT Bank and Janone 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 Janone. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Janone.
Diversification Opportunities for PT Bank and Janone
Pay attention - limited upside
The 3 months correlation between BKRKF and Janone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Janone Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janone Inc 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 Janone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janone Inc has no effect on the direction of PT Bank i.e., PT Bank and Janone go up and down completely randomly.
Pair Corralation between PT Bank and Janone
If you would invest 26.00 in PT Bank Rakyat on August 31, 2024 and sell it today you would lose (1.00) from holding PT Bank Rakyat or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Janone Inc
Performance |
| Timeline |
| PT Bank Rakyat |
| Janone Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Janone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Janone
The main advantage of trading using opposite PT Bank and Janone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Janone 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 Janone will offset losses from the drop in Janone's long position.| PT Bank vs. Bank Mandiri Persero | PT Bank vs. Piraeus Bank SA | PT Bank vs. Kasikornbank Public Co | PT Bank vs. Turkiye Garanti Bankasi |
| Janone vs. Avalon Holdings | Janone vs. LanzaTech Global | Janone vs. Ambipar Emergency Response | Janone vs. Houston Natural Resources |
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 Stocks Directory module to find actively traded stocks across global markets.
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