Correlation Between PT Bank and Konica Minolta
Can any of the company-specific risk be diversified away by investing in both PT Bank and Konica Minolta 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 Konica Minolta 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 Konica Minolta, you can compare the effects of market volatilities on PT Bank and Konica Minolta 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 Konica Minolta. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Konica Minolta.
Diversification Opportunities for PT Bank and Konica Minolta
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BYRA and Konica is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta 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 Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of PT Bank i.e., PT Bank and Konica Minolta go up and down completely randomly.
Pair Corralation between PT Bank and Konica Minolta
Assuming the 90 days trading horizon PT Bank Rakyat is expected to generate 3.85 times more return on investment than Konica Minolta. However, PT Bank is 3.85 times more volatile than Konica Minolta. It trades about -0.06 of its potential returns per unit of risk. Konica Minolta is currently generating about -0.28 per unit of risk. If you would invest 25.00 in PT Bank Rakyat on October 21, 2024 and sell it today you would lose (2.00) from holding PT Bank Rakyat or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Konica Minolta
Performance |
| Timeline |
| PT Bank Rakyat |
| Konica Minolta |
PT Bank and Konica Minolta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Konica Minolta
The main advantage of trading using opposite PT Bank and Konica Minolta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Konica Minolta 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 Konica Minolta will offset losses from the drop in Konica Minolta's long position.| PT Bank vs. FIREWEED METALS P | PT Bank vs. BOSTON BEER A | PT Bank vs. Air Transport Services | PT Bank vs. Nippon Light Metal |
| Konica Minolta vs. FUJIFILM Holdings | Konica Minolta vs. Avery Dennison Corp | Konica Minolta vs. KOKUYO LTD | Konica Minolta vs. Takkt AG |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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