Correlation Between PT Bank and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both PT Bank and Cellnex Telecom 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 Cellnex Telecom 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 Cellnex Telecom SA, you can compare the effects of market volatilities on PT Bank and Cellnex Telecom 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 Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Cellnex Telecom.
Diversification Opportunities for PT Bank and Cellnex Telecom
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PBCRF and Cellnex is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Cellnex Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellnex Telecom SA 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 Cellnex Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellnex Telecom SA has no effect on the direction of PT Bank i.e., PT Bank and Cellnex Telecom go up and down completely randomly.
Pair Corralation between PT Bank and Cellnex Telecom
Assuming the 90 days horizon PT Bank Central is expected to under-perform the Cellnex Telecom. In addition to that, PT Bank is 1.32 times more volatile than Cellnex Telecom SA. It trades about -0.04 of its total potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.11 per unit of volatility. If you would invest 3,073 in Cellnex Telecom SA on October 20, 2024 and sell it today you would earn a total of 224.00 from holding Cellnex Telecom SA or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
PT Bank Central vs. Cellnex Telecom SA
Performance |
| Timeline |
| PT Bank Central |
| Cellnex Telecom SA |
PT Bank and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Cellnex Telecom
The main advantage of trading using opposite PT Bank and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Cellnex Telecom 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 Cellnex Telecom will offset losses from the drop in Cellnex Telecom'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 |
| Cellnex Telecom vs. CBRE Group Class | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Newmark Group | Cellnex Telecom vs. Colliers International Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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