Correlation Between PT Bank and SunPower
Can any of the company-specific risk be diversified away by investing in both PT Bank and SunPower 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 SunPower 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 SunPower, you can compare the effects of market volatilities on PT Bank and SunPower 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 SunPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and SunPower.
Diversification Opportunities for PT Bank and SunPower
Poor diversification
The 3 months correlation between BKRKF and SunPower is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and SunPower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunPower 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 SunPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunPower has no effect on the direction of PT Bank i.e., PT Bank and SunPower go up and down completely randomly.
Pair Corralation between PT Bank and SunPower
If you would invest 23.00 in PT Bank Rakyat on November 2, 2024 and sell it today you would lose (1.00) from holding PT Bank Rakyat or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. SunPower
Performance |
| Timeline |
| PT Bank Rakyat |
| SunPower |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and SunPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and SunPower
The main advantage of trading using opposite PT Bank and SunPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, SunPower 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 SunPower will offset losses from the drop in SunPower's long position.| PT Bank vs. First Hawaiian | PT Bank vs. Central Pacific Financial | PT Bank vs. Territorial Bancorp | PT Bank vs. Comerica |
| SunPower vs. Enphase Energy | SunPower vs. First Solar | SunPower vs. Sunnova Energy International | SunPower vs. SolarEdge Technologies |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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