Correlation Between PT Bank and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both PT Bank and Hyster Yale 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 Hyster Yale 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 Hyster Yale Materials Handling, you can compare the effects of market volatilities on PT Bank and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Hyster Yale.
Diversification Opportunities for PT Bank and Hyster Yale
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BOZA and Hyster is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of PT Bank i.e., PT Bank and Hyster Yale go up and down completely randomly.
Pair Corralation between PT Bank and Hyster Yale
Assuming the 90 days trading horizon PT Bank is expected to generate 3.15 times less return on investment than Hyster Yale. In addition to that, PT Bank is 1.61 times more volatile than Hyster Yale Materials Handling. It trades about 0.01 of its total potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.04 per unit of volatility. If you would invest 3,982 in Hyster Yale Materials Handling on September 12, 2024 and sell it today you would earn a total of 1,118 from holding Hyster Yale Materials Handling or generate 28.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Maybank vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| PT Bank Maybank |
| Hyster Yale Materials |
PT Bank and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Hyster Yale
The main advantage of trading using opposite PT Bank and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| PT Bank vs. China Merchants Bank | PT Bank vs. HDFC Bank Limited | PT Bank vs. ICICI Bank Limited | PT Bank vs. PT Bank Central |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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