Correlation Between PT Bank and Acasti Pharma
Can any of the company-specific risk be diversified away by investing in both PT Bank and Acasti Pharma 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 Acasti Pharma 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 Acasti Pharma, you can compare the effects of market volatilities on PT Bank and Acasti Pharma 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 Acasti Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Acasti Pharma.
Diversification Opportunities for PT Bank and Acasti Pharma
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PBCRF and Acasti is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Acasti Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acasti Pharma 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 Acasti Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acasti Pharma has no effect on the direction of PT Bank i.e., PT Bank and Acasti Pharma go up and down completely randomly.
Pair Corralation between PT Bank and Acasti Pharma
Assuming the 90 days horizon PT Bank is expected to generate 2.06 times less return on investment than Acasti Pharma. In addition to that, PT Bank is 1.09 times more volatile than Acasti Pharma. It trades about 0.03 of its total potential returns per unit of risk. Acasti Pharma is currently generating about 0.07 per unit of volatility. If you would invest 273.00 in Acasti Pharma on August 29, 2024 and sell it today you would earn a total of 64.00 from holding Acasti Pharma or generate 23.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.54% |
| Values | Daily Returns |
PT Bank Central vs. Acasti Pharma
Performance |
| Timeline |
| PT Bank Central |
| Acasti Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
PT Bank and Acasti Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Acasti Pharma
The main advantage of trading using opposite PT Bank and Acasti Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Acasti Pharma 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 Acasti Pharma will offset losses from the drop in Acasti Pharma's long position.| PT Bank vs. Commercial International Bank | PT Bank vs. Caixabank SA ADR | PT Bank vs. Bank Rakyat | PT Bank vs. Lloyds Banking Group |
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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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