Correlation Between Jacquet Metal and PT Bank
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal 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 Jacquet Metal and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and PT Bank Rakyat, you can compare the effects of market volatilities on Jacquet Metal 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 Jacquet Metal with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and PT Bank.
Diversification Opportunities for Jacquet Metal and PT Bank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacquet and BYRA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service 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 Jacquet Metal 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 Jacquet Metal Service 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 Jacquet Metal i.e., Jacquet Metal and PT Bank go up and down completely randomly.
Pair Corralation between Jacquet Metal and PT Bank
Assuming the 90 days horizon Jacquet Metal is expected to generate 5.49 times less return on investment than PT Bank. But when comparing it to its historical volatility, Jacquet Metal Service is 3.4 times less risky than PT Bank. It trades about 0.02 of its potential returns per unit of risk. PT Bank Rakyat is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 26.00 in PT Bank Rakyat on October 16, 2024 and sell it today you would lose (2.00) from holding PT Bank Rakyat or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. PT Bank Rakyat
Performance |
| Timeline |
| Jacquet Metal Service |
| PT Bank Rakyat |
Jacquet Metal and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and PT Bank
The main advantage of trading using opposite Jacquet Metal and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal 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.| Jacquet Metal vs. Cal Maine Foods | Jacquet Metal vs. PLANT VEDA FOODS | Jacquet Metal vs. THAI BEVERAGE | Jacquet Metal vs. Austevoll Seafood ASA |
| PT Bank vs. AUSNUTRIA DAIRY | PT Bank vs. EBRO FOODS | PT Bank vs. Minerals Technologies | PT Bank vs. CN MODERN DAIRY |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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