Correlation Between PT Bank and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both PT Bank and UNIQA INSURANCE 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 UNIQA INSURANCE 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 UNIQA INSURANCE GR, you can compare the effects of market volatilities on PT Bank and UNIQA INSURANCE 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 UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and UNIQA INSURANCE.
Diversification Opportunities for PT Bank and UNIQA INSURANCE
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYRA and UNIQA is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and UNIQA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA INSURANCE GR 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 UNIQA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA INSURANCE GR has no effect on the direction of PT Bank i.e., PT Bank and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between PT Bank and UNIQA INSURANCE
Assuming the 90 days trading horizon PT Bank Rakyat is expected to under-perform the UNIQA INSURANCE. In addition to that, PT Bank is 11.52 times more volatile than UNIQA INSURANCE GR. It trades about -0.13 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.56 per unit of volatility. If you would invest 745.00 in UNIQA INSURANCE GR on October 13, 2024 and sell it today you would earn a total of 45.00 from holding UNIQA INSURANCE GR or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| PT Bank Rakyat |
| UNIQA INSURANCE GR |
PT Bank and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and UNIQA INSURANCE
The main advantage of trading using opposite PT Bank and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, UNIQA INSURANCE 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 UNIQA INSURANCE will offset losses from the drop in UNIQA INSURANCE's long position.| PT Bank vs. DENTSPLY SIRONA | PT Bank vs. ANGANG STEEL H | PT Bank vs. Nippon Steel | PT Bank vs. Sch Environnement SA |
| UNIQA INSURANCE vs. SPORTING | UNIQA INSURANCE vs. Constellation Software | UNIQA INSURANCE vs. NTG Nordic Transport | UNIQA INSURANCE vs. BII Railway Transportation |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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