Correlation Between PT Bank and LASSONDE INDUSTINC
Can any of the company-specific risk be diversified away by investing in both PT Bank and LASSONDE INDUSTINC 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 LASSONDE INDUSTINC 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 LASSONDE INDUSTINC A, you can compare the effects of market volatilities on PT Bank and LASSONDE INDUSTINC 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 LASSONDE INDUSTINC. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and LASSONDE INDUSTINC.
Diversification Opportunities for PT Bank and LASSONDE INDUSTINC
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYRA and LASSONDE is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and LASSONDE INDUSTINC A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LASSONDE INDUSTINC 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 LASSONDE INDUSTINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LASSONDE INDUSTINC has no effect on the direction of PT Bank i.e., PT Bank and LASSONDE INDUSTINC go up and down completely randomly.
Pair Corralation between PT Bank and LASSONDE INDUSTINC
Assuming the 90 days trading horizon PT Bank Rakyat is expected to under-perform the LASSONDE INDUSTINC. In addition to that, PT Bank is 2.14 times more volatile than LASSONDE INDUSTINC A. It trades about -0.05 of its total potential returns per unit of risk. LASSONDE INDUSTINC A is currently generating about 0.08 per unit of volatility. If you would invest 11,302 in LASSONDE INDUSTINC A on September 2, 2024 and sell it today you would earn a total of 398.00 from holding LASSONDE INDUSTINC A or generate 3.52% 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. LASSONDE INDUSTINC A
Performance |
| Timeline |
| PT Bank Rakyat |
| LASSONDE INDUSTINC |
PT Bank and LASSONDE INDUSTINC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and LASSONDE INDUSTINC
The main advantage of trading using opposite PT Bank and LASSONDE INDUSTINC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, LASSONDE INDUSTINC 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 LASSONDE INDUSTINC will offset losses from the drop in LASSONDE INDUSTINC's long position.| PT Bank vs. COMMERCIAL VEHICLE | PT Bank vs. Carsales | PT Bank vs. ADRIATIC METALS LS 013355 | PT Bank vs. Lamar Advertising |
| LASSONDE INDUSTINC vs. Ribbon Communications | LASSONDE INDUSTINC vs. CosmoSteel Holdings Limited | LASSONDE INDUSTINC vs. COSMOSTEEL HLDGS | LASSONDE INDUSTINC vs. Singapore Telecommunications Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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