Correlation Between PT Bank and KBC Groep
Can any of the company-specific risk be diversified away by investing in both PT Bank and KBC Groep 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 KBC Groep 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 KBC Groep NV, you can compare the effects of market volatilities on PT Bank and KBC Groep 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 KBC Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and KBC Groep.
Diversification Opportunities for PT Bank and KBC Groep
Very good diversification
The 3 months correlation between BKRKF and KBC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and KBC Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Groep NV 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 KBC Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Groep NV has no effect on the direction of PT Bank i.e., PT Bank and KBC Groep go up and down completely randomly.
Pair Corralation between PT Bank and KBC Groep
Assuming the 90 days horizon PT Bank is expected to generate 1.52 times less return on investment than KBC Groep. In addition to that, PT Bank is 4.95 times more volatile than KBC Groep NV. It trades about 0.01 of its total potential returns per unit of risk. KBC Groep NV is currently generating about 0.06 per unit of volatility. If you would invest 3,235 in KBC Groep NV on October 22, 2024 and sell it today you would earn a total of 515.00 from holding KBC Groep NV or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
PT Bank Rakyat vs. KBC Groep NV
Performance |
| Timeline |
| PT Bank Rakyat |
| KBC Groep NV |
PT Bank and KBC Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and KBC Groep
The main advantage of trading using opposite PT Bank and KBC Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, KBC Groep 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 KBC Groep will offset losses from the drop in KBC Groep'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 |
| KBC Groep vs. DBS Group Holdings | KBC Groep vs. United Overseas Bank | KBC Groep vs. Overseas Chinese Banking | KBC Groep vs. China Minsh |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |