Correlation Between PT Bank and KULR Technology
Can any of the company-specific risk be diversified away by investing in both PT Bank and KULR Technology 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 KULR Technology 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 KULR Technology Group, you can compare the effects of market volatilities on PT Bank and KULR Technology 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 KULR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and KULR Technology.
Diversification Opportunities for PT Bank and KULR Technology
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and KULR is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and KULR Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KULR Technology Group 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 KULR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KULR Technology Group has no effect on the direction of PT Bank i.e., PT Bank and KULR Technology go up and down completely randomly.
Pair Corralation between PT Bank and KULR Technology
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 1.18 times more return on investment than KULR Technology. However, PT Bank is 1.18 times more volatile than KULR Technology Group. It trades about 0.09 of its potential returns per unit of risk. KULR Technology Group is currently generating about -0.21 per unit of risk. If you would invest 22.00 in PT Bank Rakyat on November 28, 2024 and sell it today you would earn a total of 2.00 from holding PT Bank Rakyat or generate 9.09% 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. KULR Technology Group
Performance |
| Timeline |
| PT Bank Rakyat |
| KULR Technology Group |
PT Bank and KULR Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and KULR Technology
The main advantage of trading using opposite PT Bank and KULR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, KULR Technology 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 KULR Technology will offset losses from the drop in KULR Technology'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 |
| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |