Correlation Between PT Bank and Global Technology
Can any of the company-specific risk be diversified away by investing in both PT Bank and Global Technology 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 Global Technology 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 Global Technology Acquisition, you can compare the effects of market volatilities on PT Bank and Global Technology 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 Global Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Global Technology.
Diversification Opportunities for PT Bank and Global Technology
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between PBCRF and Global is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Global Technology Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Technology 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 Global Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Technology has no effect on the direction of PT Bank i.e., PT Bank and Global Technology go up and down completely randomly.
Pair Corralation between PT Bank and Global Technology
Assuming the 90 days horizon PT Bank Central is expected to generate 9.5 times more return on investment than Global Technology. However, PT Bank is 9.5 times more volatile than Global Technology Acquisition. It trades about 0.05 of its potential returns per unit of risk. Global Technology Acquisition is currently generating about 0.1 per unit of risk. If you would invest 58.00 in PT Bank Central on September 1, 2024 and sell it today you would earn a total of 9.00 from holding PT Bank Central or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.57% |
| Values | Daily Returns |
PT Bank Central vs. Global Technology Acquisition
Performance |
| Timeline |
| PT Bank Central |
| Global Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
PT Bank and Global Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Global Technology
The main advantage of trading using opposite PT Bank and Global Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Global Technology 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 Global Technology will offset losses from the drop in Global Technology's long position.| PT Bank vs. Piraeus Bank SA | PT Bank vs. Turkiye Garanti Bankasi | PT Bank vs. Delhi Bank Corp | PT Bank vs. Uwharrie Capital Corp |
| Global Technology vs. Valneva SE ADR | Global Technology vs. Li Auto | Global Technology vs. Modine Manufacturing | Global Technology vs. Minerals Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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