Correlation Between PT Bank and LF Capital
Can any of the company-specific risk be diversified away by investing in both PT Bank and LF Capital 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 LF Capital 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 LF Capital Acquisition, you can compare the effects of market volatilities on PT Bank and LF Capital 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 LF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and LF Capital.
Diversification Opportunities for PT Bank and LF Capital
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKRKF and LFAC is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and LF Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LF Capital Acquisition 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 LF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LF Capital Acquisition has no effect on the direction of PT Bank i.e., PT Bank and LF Capital go up and down completely randomly.
Pair Corralation between PT Bank and LF Capital
If you would invest 1,073 in LF Capital Acquisition on August 29, 2024 and sell it today you would earn a total of 0.00 from holding LF Capital Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
PT Bank Rakyat vs. LF Capital Acquisition
Performance |
| Timeline |
| PT Bank Rakyat |
| LF Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and LF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and LF Capital
The main advantage of trading using opposite PT Bank and LF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, LF Capital 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 LF Capital will offset losses from the drop in LF Capital'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 |
| LF Capital vs. Swiftmerge Acquisition Corp | LF Capital vs. Latamgrowth SPAC Unit | LF Capital vs. TLGY Acquisition Corp | LF Capital vs. Qomolangma Acquisition Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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