Correlation Between PT Bank and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both PT Bank and SINGAPORE POST 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 SINGAPORE POST 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 SINGAPORE POST, you can compare the effects of market volatilities on PT Bank and SINGAPORE POST 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and SINGAPORE POST.
Diversification Opportunities for PT Bank and SINGAPORE POST
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BYRA and SINGAPORE is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of PT Bank i.e., PT Bank and SINGAPORE POST go up and down completely randomly.
Pair Corralation between PT Bank and SINGAPORE POST
Assuming the 90 days trading horizon PT Bank is expected to generate 4.52 times less return on investment than SINGAPORE POST. In addition to that, PT Bank is 1.83 times more volatile than SINGAPORE POST. It trades about 0.01 of its total potential returns per unit of risk. SINGAPORE POST is currently generating about 0.04 per unit of volatility. If you would invest 29.00 in SINGAPORE POST on August 24, 2024 and sell it today you would earn a total of 6.00 from holding SINGAPORE POST or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
PT Bank Rakyat vs. SINGAPORE POST
Performance |
| Timeline |
| PT Bank Rakyat |
| SINGAPORE POST |
PT Bank and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and SINGAPORE POST
The main advantage of trading using opposite PT Bank and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST's long position.| PT Bank vs. Laureate Education | PT Bank vs. BOS BETTER ONLINE | PT Bank vs. G III Apparel Group | PT Bank vs. RYU Apparel |
| SINGAPORE POST vs. Western Copper and | SINGAPORE POST vs. Molson Coors Beverage | SINGAPORE POST vs. ScanSource | SINGAPORE POST vs. Evolution Mining 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 CEOs Directory module to screen CEOs from public companies around the world.
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