Correlation Between PT Bank and JD HEALTH
Can any of the company-specific risk be diversified away by investing in both PT Bank and JD HEALTH 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 JD HEALTH 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 JD HEALTH INTL, you can compare the effects of market volatilities on PT Bank and JD HEALTH 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 JD HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and JD HEALTH.
Diversification Opportunities for PT Bank and JD HEALTH
Good diversification
The 3 months correlation between BYRA and 8ZN is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and JD HEALTH INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD HEALTH INTL 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 JD HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD HEALTH INTL has no effect on the direction of PT Bank i.e., PT Bank and JD HEALTH go up and down completely randomly.
Pair Corralation between PT Bank and JD HEALTH
Assuming the 90 days trading horizon PT Bank Rakyat is expected to generate 1.39 times more return on investment than JD HEALTH. However, PT Bank is 1.39 times more volatile than JD HEALTH INTL. It trades about 0.01 of its potential returns per unit of risk. JD HEALTH INTL is currently generating about -0.01 per unit of risk. If you would invest 28.00 in PT Bank Rakyat on November 28, 2024 and sell it today you would lose (5.00) from holding PT Bank Rakyat or give up 17.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
PT Bank Rakyat vs. JD HEALTH INTL
Performance |
| Timeline |
| PT Bank Rakyat |
| JD HEALTH INTL |
PT Bank and JD HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and JD HEALTH
The main advantage of trading using opposite PT Bank and JD HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, JD HEALTH 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 JD HEALTH will offset losses from the drop in JD HEALTH's long position.| PT Bank vs. MEDICAL FACILITIES NEW | PT Bank vs. Cairo Communication SpA | PT Bank vs. Verizon Communications | PT Bank vs. Merit Medical Systems |
| JD HEALTH vs. Nanjing Panda Electronics | JD HEALTH vs. Nucletron Electronic Aktiengesellschaft | JD HEALTH vs. Siamgas And Petrochemicals | JD HEALTH vs. Arrow Electronics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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