Correlation Between PT Bank and Triad Business
Can any of the company-specific risk be diversified away by investing in both PT Bank and Triad Business 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 Triad Business 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 Triad Business Bank, you can compare the effects of market volatilities on PT Bank and Triad Business 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 Triad Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Triad Business.
Diversification Opportunities for PT Bank and Triad Business
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BKRKF and Triad is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Triad Business Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triad Business Bank 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 Triad Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triad Business Bank has no effect on the direction of PT Bank i.e., PT Bank and Triad Business go up and down completely randomly.
Pair Corralation between PT Bank and Triad Business
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 6.91 times more return on investment than Triad Business. However, PT Bank is 6.91 times more volatile than Triad Business Bank. It trades about -0.01 of its potential returns per unit of risk. Triad Business Bank is currently generating about -0.13 per unit of risk. If you would invest 28.00 in PT Bank Rakyat on September 15, 2024 and sell it today you would lose (2.00) from holding PT Bank Rakyat or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Bank Rakyat vs. Triad Business Bank
Performance |
| Timeline |
| PT Bank Rakyat |
| Triad Business Bank |
PT Bank and Triad Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Triad Business
The main advantage of trading using opposite PT Bank and Triad Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Triad Business 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 Triad Business will offset losses from the drop in Triad Business' long position.| PT Bank vs. Bank Mandiri Persero | PT Bank vs. Piraeus Bank SA | PT Bank vs. Eurobank Ergasias Services | PT Bank vs. Kasikornbank Public Co |
| Triad Business vs. PT Bank Rakyat | Triad Business vs. Morningstar Unconstrained Allocation | Triad Business vs. Bondbloxx ETF Trust | Triad Business vs. Spring Valley Acquisition |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |