Correlation Between PT Bank and Muncy Bank
Can any of the company-specific risk be diversified away by investing in both PT Bank and Muncy Bank 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 Muncy Bank 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 Muncy Bank Financial, you can compare the effects of market volatilities on PT Bank and Muncy Bank 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 Muncy Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Muncy Bank.
Diversification Opportunities for PT Bank and Muncy Bank
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and Muncy is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Muncy Bank Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muncy Bank Financial 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 Muncy Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muncy Bank Financial has no effect on the direction of PT Bank i.e., PT Bank and Muncy Bank go up and down completely randomly.
Pair Corralation between PT Bank and Muncy Bank
If you would invest 34.00 in PT Bank Rakyat on September 1, 2024 and sell it today you would lose (9.00) from holding PT Bank Rakyat or give up 26.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.54% |
| Values | Daily Returns |
PT Bank Rakyat vs. Muncy Bank Financial
Performance |
| Timeline |
| PT Bank Rakyat |
| Muncy Bank Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Muncy Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Muncy Bank
The main advantage of trading using opposite PT Bank and Muncy Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Muncy Bank 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 Muncy Bank will offset losses from the drop in Muncy Bank's long position.| PT Bank vs. Piraeus Bank SA | PT Bank vs. Turkiye Garanti Bankasi | PT Bank vs. Delhi Bank Corp | PT Bank vs. Uwharrie Capital Corp |
| Muncy Bank vs. Main Street Financial | Muncy Bank vs. Susquehanna Community Financial | Muncy Bank vs. First Keystone Corp | Muncy Bank vs. Mifflinburg Bancorp |
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.
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