Correlation Between PT Bank and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both PT Bank and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW, you can compare the effects of market volatilities on PT Bank and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and OAKTRSPECLENDNEW.
Diversification Opportunities for PT Bank and OAKTRSPECLENDNEW
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between BOZA and OAKTRSPECLENDNEW is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of PT Bank i.e., PT Bank and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between PT Bank and OAKTRSPECLENDNEW
Assuming the 90 days trading horizon PT Bank Maybank is expected to generate 3.44 times more return on investment than OAKTRSPECLENDNEW. However, PT Bank is 3.44 times more volatile than OAKTRSPECLENDNEW. It trades about 0.01 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about -0.01 per unit of risk. If you would invest 1.45 in PT Bank Maybank on August 26, 2024 and sell it today you would lose (0.25) from holding PT Bank Maybank or give up 17.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Maybank vs. OAKTRSPECLENDNEW
Performance |
| Timeline |
| PT Bank Maybank |
| OAKTRSPECLENDNEW |
PT Bank and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and OAKTRSPECLENDNEW
The main advantage of trading using opposite PT Bank and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.| PT Bank vs. HDFC Bank Limited | PT Bank vs. PT Bank Central | PT Bank vs. DBS Group Holdings | PT Bank vs. State Bank of |
| OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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