Correlation Between PT Bank and Tradegate
Can any of the company-specific risk be diversified away by investing in both PT Bank and Tradegate 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 Tradegate 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 Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on PT Bank and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Tradegate.
Diversification Opportunities for PT Bank and Tradegate
Good diversification
The 3 months correlation between BOZA and Tradegate is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of PT Bank i.e., PT Bank and Tradegate go up and down completely randomly.
Pair Corralation between PT Bank and Tradegate
Assuming the 90 days trading horizon PT Bank Maybank is expected to generate 3.26 times more return on investment than Tradegate. However, PT Bank is 3.26 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.02 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about -0.05 per unit of risk. If you would invest 1.35 in PT Bank Maybank on September 14, 2024 and sell it today you would lose (0.10) from holding PT Bank Maybank or give up 7.41% 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. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| PT Bank Maybank |
| Tradegate AG Wertpap |
PT Bank and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Tradegate
The main advantage of trading using opposite PT Bank and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate'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 |
| Tradegate vs. Superior Plus Corp | Tradegate vs. SIVERS SEMICONDUCTORS AB | Tradegate vs. CHINA HUARONG ENERHD 50 | Tradegate vs. NORDIC HALIBUT AS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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