Correlation Between REVO INSURANCE and PT Bank
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and PT Bank 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 REVO INSURANCE and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and PT Bank Rakyat, you can compare the effects of market volatilities on REVO INSURANCE and PT Bank 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 REVO INSURANCE with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and PT Bank.
Diversification Opportunities for REVO INSURANCE and PT Bank
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between REVO and BYRA is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and PT Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Rakyat and REVO INSURANCE 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 REVO INSURANCE SPA are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Rakyat has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and PT Bank go up and down completely randomly.
Pair Corralation between REVO INSURANCE and PT Bank
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 0.22 times more return on investment than PT Bank. However, REVO INSURANCE SPA is 4.52 times less risky than PT Bank. It trades about 0.57 of its potential returns per unit of risk. PT Bank Rakyat is currently generating about -0.04 per unit of risk. If you would invest 1,020 in REVO INSURANCE SPA on September 20, 2024 and sell it today you would earn a total of 170.00 from holding REVO INSURANCE SPA or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. PT Bank Rakyat
Performance |
| Timeline |
| REVO INSURANCE SPA |
| PT Bank Rakyat |
REVO INSURANCE and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and PT Bank
The main advantage of trading using opposite REVO INSURANCE and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| REVO INSURANCE vs. Lyxor 1 | REVO INSURANCE vs. Xtrackers LevDAX | REVO INSURANCE vs. Xtrackers ShortDAX | REVO INSURANCE vs. Superior Plus Corp |
| PT Bank vs. PT Bank Maybank | PT Bank vs. Commonwealth Bank of | PT Bank vs. Western Copper and | PT Bank vs. REVO INSURANCE SPA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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