Correlation Between PT Bank and United Overseas
Can any of the company-specific risk be diversified away by investing in both PT Bank and United Overseas 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 United Overseas 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 United Overseas Bank, you can compare the effects of market volatilities on PT Bank and United Overseas 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 United Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and United Overseas.
Diversification Opportunities for PT Bank and United Overseas
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BZG2 and United is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and United Overseas Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Overseas Bank 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 United Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Overseas Bank has no effect on the direction of PT Bank i.e., PT Bank and United Overseas go up and down completely randomly.
Pair Corralation between PT Bank and United Overseas
Assuming the 90 days trading horizon PT Bank Central is expected to under-perform the United Overseas. In addition to that, PT Bank is 1.92 times more volatile than United Overseas Bank. It trades about -0.01 of its total potential returns per unit of risk. United Overseas Bank is currently generating about 0.21 per unit of volatility. If you would invest 2,325 in United Overseas Bank on September 8, 2024 and sell it today you would earn a total of 256.00 from holding United Overseas Bank or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Bank Central vs. United Overseas Bank
Performance |
| Timeline |
| PT Bank Central |
| United Overseas Bank |
PT Bank and United Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and United Overseas
The main advantage of trading using opposite PT Bank and United Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, United Overseas 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 United Overseas will offset losses from the drop in United Overseas' long position.| PT Bank vs. YOOMA WELLNESS INC | PT Bank vs. TYSON FOODS A | PT Bank vs. ASSOC BR FOODS | PT Bank vs. British American Tobacco |
| United Overseas vs. WisdomTree Investments | United Overseas vs. Gladstone Investment | United Overseas vs. PennantPark Investment | United Overseas vs. Ramsay 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |