Correlation Between PT Bank and Erste Group
Can any of the company-specific risk be diversified away by investing in both PT Bank and Erste Group 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 Erste Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and Erste Group Bank, you can compare the effects of market volatilities on PT Bank and Erste Group 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 Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Erste Group.
Diversification Opportunities for PT Bank and Erste Group
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BYRA and Erste is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank 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 Rakyat are associated (or correlated) with Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of PT Bank i.e., PT Bank and Erste Group go up and down completely randomly.
Pair Corralation between PT Bank and Erste Group
Assuming the 90 days trading horizon PT Bank is expected to generate 2.47 times less return on investment than Erste Group. In addition to that, PT Bank is 4.32 times more volatile than Erste Group Bank. It trades about 0.03 of its total potential returns per unit of risk. Erste Group Bank is currently generating about 0.3 per unit of volatility. If you would invest 5,614 in Erste Group Bank on October 12, 2024 and sell it today you would earn a total of 384.00 from holding Erste Group Bank or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Erste Group Bank
Performance |
| Timeline |
| PT Bank Rakyat |
| Erste Group Bank |
PT Bank and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Erste Group
The main advantage of trading using opposite PT Bank and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group's long position.| PT Bank vs. CanSino Biologics | PT Bank vs. STORE ELECTRONIC | PT Bank vs. Methode Electronics | PT Bank vs. Pentair plc |
| Erste Group vs. CITY OFFICE REIT | Erste Group vs. INVITATION HOMES DL | Erste Group vs. Fortescue Metals Group | Erste Group vs. MAVEN WIRELESS SWEDEN |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |