Correlation Between PT Bank and Prospector Capital
Can any of the company-specific risk be diversified away by investing in both PT Bank and Prospector 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 Prospector 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 Prospector Capital Corp, you can compare the effects of market volatilities on PT Bank and Prospector 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 Prospector Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Prospector Capital.
Diversification Opportunities for PT Bank and Prospector Capital
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKRKF and Prospector is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Prospector Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prospector Capital Corp 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 Prospector Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prospector Capital Corp has no effect on the direction of PT Bank i.e., PT Bank and Prospector Capital go up and down completely randomly.
Pair Corralation between PT Bank and Prospector Capital
If you would invest 29.00 in PT Bank Rakyat on September 1, 2024 and sell it today you would lose (4.00) from holding PT Bank Rakyat or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.46% |
| Values | Daily Returns |
PT Bank Rakyat vs. Prospector Capital Corp
Performance |
| Timeline |
| PT Bank Rakyat |
| Prospector Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Prospector Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Prospector Capital
The main advantage of trading using opposite PT Bank and Prospector Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Prospector 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 Prospector Capital will offset losses from the drop in Prospector Capital'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 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |