Correlation Between PT Bank and Republic Services
Can any of the company-specific risk be diversified away by investing in both PT Bank and Republic Services 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 Republic Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Central and Republic Services, you can compare the effects of market volatilities on PT Bank and Republic Services 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 Republic Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Republic Services.
Diversification Opportunities for PT Bank and Republic Services
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BZG2 and Republic is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Republic Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Republic Services 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 Central are associated (or correlated) with Republic Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Republic Services has no effect on the direction of PT Bank i.e., PT Bank and Republic Services go up and down completely randomly.
Pair Corralation between PT Bank and Republic Services
Assuming the 90 days trading horizon PT Bank is expected to generate 1.87 times less return on investment than Republic Services. In addition to that, PT Bank is 3.28 times more volatile than Republic Services. It trades about 0.02 of its total potential returns per unit of risk. Republic Services is currently generating about 0.12 per unit of volatility. If you would invest 12,904 in Republic Services on August 31, 2024 and sell it today you would earn a total of 7,836 from holding Republic Services or generate 60.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Central vs. Republic Services
Performance |
| Timeline |
| PT Bank Central |
| Republic Services |
PT Bank and Republic Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Republic Services
The main advantage of trading using opposite PT Bank and Republic Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Republic Services 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 Republic Services will offset losses from the drop in Republic Services' long position.| PT Bank vs. SLR Investment Corp | PT Bank vs. BRIT AMER TOBACCO | PT Bank vs. WESTLAKE CHEMICAL | PT Bank vs. TIANDE CHEMICAL |
| Republic Services vs. Tianjin Capital Environmental | Republic Services vs. Nippon Steel | Republic Services vs. JAPAN TOBACCO UNSPADR12 | Republic Services vs. Sabra Health Care |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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