Correlation Between PT Bank and KSB SE
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By analyzing existing cross correlation between PT Bank Rakyat and KSB SE Co, you can compare the effects of market volatilities on PT Bank and KSB SE 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 KSB SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and KSB SE.
Diversification Opportunities for PT Bank and KSB SE
Excellent diversification
The 3 months correlation between BYRA and KSB is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and KSB SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSB SE 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 KSB SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSB SE has no effect on the direction of PT Bank i.e., PT Bank and KSB SE go up and down completely randomly.
Pair Corralation between PT Bank and KSB SE
Assuming the 90 days trading horizon PT Bank Rakyat is expected to under-perform the KSB SE. In addition to that, PT Bank is 3.4 times more volatile than KSB SE Co. It trades about -0.02 of its total potential returns per unit of risk. KSB SE Co is currently generating about 0.05 per unit of volatility. If you would invest 57,600 in KSB SE Co on September 2, 2024 and sell it today you would earn a total of 2,200 from holding KSB SE Co or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. KSB SE Co
Performance |
| Timeline |
| PT Bank Rakyat |
| KSB SE |
PT Bank and KSB SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and KSB SE
The main advantage of trading using opposite PT Bank and KSB SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, KSB SE 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 KSB SE will offset losses from the drop in KSB SE's long position.| PT Bank vs. Fast Retailing Co | PT Bank vs. Casio Computer CoLtd | PT Bank vs. JIAHUA STORES | PT Bank vs. BJs Wholesale Club |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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