Correlation Between PT Bank and Kalera Public
Can any of the company-specific risk be diversified away by investing in both PT Bank and Kalera Public 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 Kalera Public 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 Kalera Public Limited, you can compare the effects of market volatilities on PT Bank and Kalera Public 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 Kalera Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Kalera Public.
Diversification Opportunities for PT Bank and Kalera Public
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKRKF and Kalera is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Kalera Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalera Public Limited 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 Kalera Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalera Public Limited has no effect on the direction of PT Bank i.e., PT Bank and Kalera Public go up and down completely randomly.
Pair Corralation between PT Bank and Kalera Public
If you would invest 26.00 in PT Bank Rakyat on October 14, 2024 and sell it today you would earn a total of 1.00 from holding PT Bank Rakyat or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
PT Bank Rakyat vs. Kalera Public Limited
Performance |
| Timeline |
| PT Bank Rakyat |
| Kalera Public Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Kalera Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Kalera Public
The main advantage of trading using opposite PT Bank and Kalera Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Kalera Public 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 Kalera Public will offset losses from the drop in Kalera Public'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 |
| Kalera Public vs. Global Clean Energy | Kalera Public vs. Limoneira Co | Kalera Public vs. Edible Garden AG | Kalera Public vs. Golden Agri 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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