Correlation Between PT Bank and RTL Group
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By analyzing existing cross correlation between PT Bank Rakyat and RTL Group SA, you can compare the effects of market volatilities on PT Bank and RTL 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 RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and RTL Group.
Diversification Opportunities for PT Bank and RTL Group
Poor diversification
The 3 months correlation between BYRA and RTL is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA 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 RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of PT Bank i.e., PT Bank and RTL Group go up and down completely randomly.
Pair Corralation between PT Bank and RTL Group
Assuming the 90 days trading horizon PT Bank Rakyat is expected to generate 0.79 times more return on investment than RTL Group. However, PT Bank Rakyat is 1.27 times less risky than RTL Group. It trades about -0.2 of its potential returns per unit of risk. RTL Group SA is currently generating about -0.25 per unit of risk. If you would invest 28.00 in PT Bank Rakyat on September 1, 2024 and sell it today you would lose (3.00) from holding PT Bank Rakyat or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Bank Rakyat vs. RTL Group SA
Performance |
| Timeline |
| PT Bank Rakyat |
| RTL Group SA |
PT Bank and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and RTL Group
The main advantage of trading using opposite PT Bank and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, RTL 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 RTL Group will offset losses from the drop in RTL Group's long position.The idea behind PT Bank Rakyat and RTL Group SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| RTL Group vs. Performance Food Group | RTL Group vs. Mitsubishi Gas Chemical | RTL Group vs. PREMIER FOODS | RTL Group vs. CHEMICAL INDUSTRIES |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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