Correlation Between PT Bank and Gamma Communications
Can any of the company-specific risk be diversified away by investing in both PT Bank and Gamma Communications 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 Gamma Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Maybank and Gamma Communications plc, you can compare the effects of market volatilities on PT Bank and Gamma Communications 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 Gamma Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Gamma Communications.
Diversification Opportunities for PT Bank and Gamma Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOZA and Gamma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank and Gamma Communications plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamma Communications plc 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 Maybank are associated (or correlated) with Gamma Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamma Communications plc has no effect on the direction of PT Bank i.e., PT Bank and Gamma Communications go up and down completely randomly.
Pair Corralation between PT Bank and Gamma Communications
Assuming the 90 days trading horizon PT Bank is expected to generate 1.43 times less return on investment than Gamma Communications. In addition to that, PT Bank is 1.96 times more volatile than Gamma Communications plc. It trades about 0.02 of its total potential returns per unit of risk. Gamma Communications plc is currently generating about 0.06 per unit of volatility. If you would invest 1,144 in Gamma Communications plc on September 2, 2024 and sell it today you would earn a total of 806.00 from holding Gamma Communications plc or generate 70.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Maybank vs. Gamma Communications plc
Performance |
| Timeline |
| PT Bank Maybank |
| Gamma Communications plc |
PT Bank and Gamma Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Gamma Communications
The main advantage of trading using opposite PT Bank and Gamma Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Gamma Communications 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 Gamma Communications will offset losses from the drop in Gamma Communications' long position.The idea behind PT Bank Maybank and Gamma Communications plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Gamma Communications vs. BJs Wholesale Club | Gamma Communications vs. ARDAGH METAL PACDL 0001 | Gamma Communications vs. Lendlease Group | Gamma Communications vs. PARKEN Sport Entertainment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |