Correlation Between PT Bank and ST Energy
Can any of the company-specific risk be diversified away by investing in both PT Bank and ST Energy 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 ST Energy 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 ST Energy Transition, you can compare the effects of market volatilities on PT Bank and ST Energy 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 ST Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and ST Energy.
Diversification Opportunities for PT Bank and ST Energy
Pay attention - limited upside
The 3 months correlation between BKRKF and STET is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and ST Energy Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ST Energy Transition 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 ST Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ST Energy Transition has no effect on the direction of PT Bank i.e., PT Bank and ST Energy go up and down completely randomly.
Pair Corralation between PT Bank and ST Energy
If you would invest 26.00 in PT Bank Rakyat on September 1, 2024 and sell it today you would lose (1.00) from holding PT Bank Rakyat or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Bank Rakyat vs. ST Energy Transition
Performance |
| Timeline |
| PT Bank Rakyat |
| ST Energy Transition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and ST Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and ST Energy
The main advantage of trading using opposite PT Bank and ST Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, ST Energy 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 ST Energy will offset losses from the drop in ST Energy'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 |
| ST Energy vs. A SPAC II | ST Energy vs. Athena Technology Acquisition | ST Energy vs. Hudson Acquisition I | ST Energy vs. Marblegate Acquisition 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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