Correlation Between PT Bank and CI GAMES
Can any of the company-specific risk be diversified away by investing in both PT Bank and CI GAMES 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 CI GAMES 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 CI GAMES SA, you can compare the effects of market volatilities on PT Bank and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and CI GAMES.
Diversification Opportunities for PT Bank and CI GAMES
Very weak diversification
The 3 months correlation between BOZA and CI7 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES SA 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of PT Bank i.e., PT Bank and CI GAMES go up and down completely randomly.
Pair Corralation between PT Bank and CI GAMES
Assuming the 90 days trading horizon PT Bank Maybank is expected to generate 1.19 times more return on investment than CI GAMES. However, PT Bank is 1.19 times more volatile than CI GAMES SA. It trades about 0.03 of its potential returns per unit of risk. CI GAMES SA is currently generating about 0.04 per unit of risk. If you would invest 1.25 in PT Bank Maybank on September 3, 2024 and sell it today you would earn a total of 0.05 from holding PT Bank Maybank or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Maybank vs. CI GAMES SA
Performance |
| Timeline |
| PT Bank Maybank |
| CI GAMES SA |
PT Bank and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and CI GAMES
The main advantage of trading using opposite PT Bank and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.| PT Bank vs. Iridium Communications | PT Bank vs. Gamma Communications plc | PT Bank vs. Ming Le Sports | PT Bank vs. Jacquet Metal Service |
| CI GAMES vs. Nintendo Co | CI GAMES vs. Nintendo Co | CI GAMES vs. Sea Limited | CI GAMES vs. Take Two Interactive Software |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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