Correlation Between PT Bank and NCR Corp
Can any of the company-specific risk be diversified away by investing in both PT Bank and NCR Corp 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 NCR Corp 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 NCR Corp Pref, you can compare the effects of market volatilities on PT Bank and NCR Corp 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 NCR Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and NCR Corp.
Diversification Opportunities for PT Bank and NCR Corp
Very good diversification
The 3 months correlation between BKRKF and NCR is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and NCR Corp Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Corp Pref 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 NCR Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Corp Pref has no effect on the direction of PT Bank i.e., PT Bank and NCR Corp go up and down completely randomly.
Pair Corralation between PT Bank and NCR Corp
If you would invest 117,125 in NCR Corp Pref on September 3, 2024 and sell it today you would earn a total of 0.00 from holding NCR Corp Pref or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
PT Bank Rakyat vs. NCR Corp Pref
Performance |
| Timeline |
| PT Bank Rakyat |
| NCR Corp Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and NCR Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and NCR Corp
The main advantage of trading using opposite PT Bank and NCR Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, NCR Corp 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 NCR Corp will offset losses from the drop in NCR Corp'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 |
| NCR Corp vs. Lifevantage | NCR Corp vs. Tyson Foods | NCR Corp vs. Asbury Automotive Group | NCR Corp vs. Village Super Market |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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