Correlation Between PT Bank and FDCTech
Can any of the company-specific risk be diversified away by investing in both PT Bank and FDCTech 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 FDCTech 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 FDCTech, you can compare the effects of market volatilities on PT Bank and FDCTech 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 FDCTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and FDCTech.
Diversification Opportunities for PT Bank and FDCTech
Very good diversification
The 3 months correlation between PBCRF and FDCTech is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and FDCTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDCTech 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 FDCTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDCTech has no effect on the direction of PT Bank i.e., PT Bank and FDCTech go up and down completely randomly.
Pair Corralation between PT Bank and FDCTech
Assuming the 90 days horizon PT Bank Central is expected to generate 0.53 times more return on investment than FDCTech. However, PT Bank Central is 1.88 times less risky than FDCTech. It trades about -0.06 of its potential returns per unit of risk. FDCTech is currently generating about -0.18 per unit of risk. If you would invest 59.00 in PT Bank Central on December 1, 2024 and sell it today you would lose (7.00) from holding PT Bank Central or give up 11.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Central vs. FDCTech
Performance |
| Timeline |
| PT Bank Central |
| FDCTech |
PT Bank and FDCTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and FDCTech
The main advantage of trading using opposite PT Bank and FDCTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, FDCTech 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 FDCTech will offset losses from the drop in FDCTech's long position.| PT Bank vs. HDFC Bank Limited | PT Bank vs. China Merchants Bank | PT Bank vs. China Merchants Bank | PT Bank vs. Fifth Third Bancorp |
| FDCTech vs. Armada Mercantile | FDCTech vs. Cal Bay Intl | FDCTech vs. BlockchainK2 Corp | FDCTech vs. Ameritrust Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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