Correlation Between PT Bank and Soma Gold
Can any of the company-specific risk be diversified away by investing in both PT Bank and Soma Gold 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 Soma Gold 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 Soma Gold Corp, you can compare the effects of market volatilities on PT Bank and Soma Gold 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 Soma Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Soma Gold.
Diversification Opportunities for PT Bank and Soma Gold
Excellent diversification
The 3 months correlation between BKRKF and Soma is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Soma Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soma Gold 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 Soma Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soma Gold Corp has no effect on the direction of PT Bank i.e., PT Bank and Soma Gold go up and down completely randomly.
Pair Corralation between PT Bank and Soma Gold
Assuming the 90 days horizon PT Bank Rakyat is expected to under-perform the Soma Gold. In addition to that, PT Bank is 1.81 times more volatile than Soma Gold Corp. It trades about -0.08 of its total potential returns per unit of risk. Soma Gold Corp is currently generating about -0.05 per unit of volatility. If you would invest 44.00 in Soma Gold Corp on September 4, 2024 and sell it today you would lose (2.00) from holding Soma Gold Corp or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Soma Gold Corp
Performance |
| Timeline |
| PT Bank Rakyat |
| Soma Gold Corp |
PT Bank and Soma Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Soma Gold
The main advantage of trading using opposite PT Bank and Soma Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Soma Gold 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 Soma Gold will offset losses from the drop in Soma Gold's long position.| PT Bank vs. First Hawaiian | PT Bank vs. Central Pacific Financial | PT Bank vs. Territorial Bancorp | PT Bank vs. Comerica |
| Soma Gold vs. Maritime Resources Corp | Soma Gold vs. Spanish Mountain Gold | Soma Gold vs. Grande Portage Resources |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |