Correlation Between PT Bank and ATOSS Software
Can any of the company-specific risk be diversified away by investing in both PT Bank and ATOSS Software 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 ATOSS Software 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 ATOSS Software SE, you can compare the effects of market volatilities on PT Bank and ATOSS Software 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 ATOSS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and ATOSS Software.
Diversification Opportunities for PT Bank and ATOSS Software
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BOZA and ATOSS is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank and ATOSS Software SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS Software SE 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 ATOSS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS Software SE has no effect on the direction of PT Bank i.e., PT Bank and ATOSS Software go up and down completely randomly.
Pair Corralation between PT Bank and ATOSS Software
Assuming the 90 days trading horizon PT Bank Maybank is expected to under-perform the ATOSS Software. In addition to that, PT Bank is 2.16 times more volatile than ATOSS Software SE. It trades about -0.04 of its total potential returns per unit of risk. ATOSS Software SE is currently generating about -0.02 per unit of volatility. If you would invest 11,100 in ATOSS Software SE on October 20, 2024 and sell it today you would lose (100.00) from holding ATOSS Software SE or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Maybank vs. ATOSS Software SE
Performance |
| Timeline |
| PT Bank Maybank |
| ATOSS Software SE |
PT Bank and ATOSS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and ATOSS Software
The main advantage of trading using opposite PT Bank and ATOSS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, ATOSS Software 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 ATOSS Software will offset losses from the drop in ATOSS Software's long position.| PT Bank vs. United Rentals | PT Bank vs. Air Lease | PT Bank vs. ALBIS LEASING AG | PT Bank vs. LANDSEA GREEN MANAGEMENT |
| ATOSS Software vs. WESANA HEALTH HOLD | ATOSS Software vs. CONTAGIOUS GAMING INC | ATOSS Software vs. BJs Restaurants | ATOSS Software vs. GAMING FAC SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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