Correlation Between PT Bank and Odyssey Group
Can any of the company-specific risk be diversified away by investing in both PT Bank and Odyssey Group 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 Odyssey Group 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 Odyssey Group International, you can compare the effects of market volatilities on PT Bank and Odyssey Group 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 Odyssey Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Odyssey Group.
Diversification Opportunities for PT Bank and Odyssey Group
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKRKF and Odyssey is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Odyssey Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Group Intern 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 Odyssey Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Group Intern has no effect on the direction of PT Bank i.e., PT Bank and Odyssey Group go up and down completely randomly.
Pair Corralation between PT Bank and Odyssey Group
Assuming the 90 days horizon PT Bank is expected to generate 7.42 times less return on investment than Odyssey Group. But when comparing it to its historical volatility, PT Bank Rakyat is 1.56 times less risky than Odyssey Group. It trades about 0.06 of its potential returns per unit of risk. Odyssey Group International is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1.60 in Odyssey Group International on September 13, 2024 and sell it today you would earn a total of 1.10 from holding Odyssey Group International or generate 68.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Odyssey Group International
Performance |
| Timeline |
| PT Bank Rakyat |
| Odyssey Group Intern |
PT Bank and Odyssey Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Odyssey Group
The main advantage of trading using opposite PT Bank and Odyssey Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Odyssey Group 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 Odyssey Group will offset losses from the drop in Odyssey Group's long position.| PT Bank vs. Morningstar Unconstrained Allocation | PT Bank vs. Bondbloxx ETF Trust | PT Bank vs. Spring Valley Acquisition | PT Bank vs. Bondbloxx ETF Trust |
| Odyssey Group vs. Abbott Laboratories | Odyssey Group vs. Stryker | Odyssey Group vs. Boston Scientific Corp | Odyssey Group vs. Medtronic PLC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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