Correlation Between PT Bank and 10X Capital
Can any of the company-specific risk be diversified away by investing in both PT Bank and 10X 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 10X 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 10X Capital Venture, you can compare the effects of market volatilities on PT Bank and 10X 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 10X Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and 10X Capital.
Diversification Opportunities for PT Bank and 10X Capital
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and 10X is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and 10X Capital Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X Capital Venture 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 10X Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X Capital Venture has no effect on the direction of PT Bank i.e., PT Bank and 10X Capital go up and down completely randomly.
Pair Corralation between PT Bank and 10X Capital
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 | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Bank Rakyat vs. 10X Capital Venture
Performance |
| Timeline |
| PT Bank Rakyat |
| 10X Capital Venture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and 10X Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and 10X Capital
The main advantage of trading using opposite PT Bank and 10X Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, 10X 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 10X Capital will offset losses from the drop in 10X 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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