Correlation Between PT Bank and Axis Technologies
Can any of the company-specific risk be diversified away by investing in both PT Bank and Axis Technologies 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 Axis Technologies 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 Axis Technologies Group, you can compare the effects of market volatilities on PT Bank and Axis Technologies 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 Axis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Axis Technologies.
Diversification Opportunities for PT Bank and Axis Technologies
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PBCRF and Axis is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Axis Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axis Technologies 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 Axis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axis Technologies has no effect on the direction of PT Bank i.e., PT Bank and Axis Technologies go up and down completely randomly.
Pair Corralation between PT Bank and Axis Technologies
Assuming the 90 days horizon PT Bank Central is expected to under-perform the Axis Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Bank Central is 13.71 times less risky than Axis Technologies. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Axis Technologies Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Axis Technologies Group on August 29, 2024 and sell it today you would earn a total of 0.10 from holding Axis Technologies Group or generate 250.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Central vs. Axis Technologies Group
Performance |
| Timeline |
| PT Bank Central |
| Axis Technologies |
PT Bank and Axis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Axis Technologies
The main advantage of trading using opposite PT Bank and Axis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Axis Technologies 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 Axis Technologies will offset losses from the drop in Axis Technologies' 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 |
| Axis Technologies vs. SPENN Technology AS | Axis Technologies vs. OFX Group Ltd | Axis Technologies vs. APAC Resources Limited | Axis Technologies vs. Cypherpunk Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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