Correlation Between PT Bank and Odyssey Marine
Can any of the company-specific risk be diversified away by investing in both PT Bank and Odyssey Marine 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 Odyssey Marine 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 Odyssey Marine Exploration, you can compare the effects of market volatilities on PT Bank and Odyssey Marine 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 Odyssey Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Odyssey Marine.
Diversification Opportunities for PT Bank and Odyssey Marine
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between BOZA and Odyssey is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank and Odyssey Marine Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Marine Explo 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 Odyssey Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Marine Explo has no effect on the direction of PT Bank i.e., PT Bank and Odyssey Marine go up and down completely randomly.
Pair Corralation between PT Bank and Odyssey Marine
Assuming the 90 days trading horizon PT Bank Maybank is expected to under-perform the Odyssey Marine. But the stock apears to be less risky and, when comparing its historical volatility, PT Bank Maybank is 3.42 times less risky than Odyssey Marine. The stock trades about -0.03 of its potential returns per unit of risk. The Odyssey Marine Exploration is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Odyssey Marine Exploration on September 5, 2024 and sell it today you would earn a total of 16.00 from holding Odyssey Marine Exploration or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Bank Maybank vs. Odyssey Marine Exploration
Performance |
| Timeline |
| PT Bank Maybank |
| Odyssey Marine Explo |
PT Bank and Odyssey Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Odyssey Marine
The main advantage of trading using opposite PT Bank and Odyssey Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Odyssey Marine 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 Odyssey Marine will offset losses from the drop in Odyssey Marine's long position.| PT Bank vs. China Merchants Bank | PT Bank vs. PT Bank Central | PT Bank vs. DBS Group Holdings | PT Bank vs. State Bank of |
| Odyssey Marine vs. Entravision Communications | Odyssey Marine vs. Gamma Communications plc | Odyssey Marine vs. COMPUTERSHARE | Odyssey Marine vs. PT Bank Maybank |
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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