Correlation Between PT Bank and Guild Esports
Can any of the company-specific risk be diversified away by investing in both PT Bank and Guild Esports 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 Guild Esports 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 Guild Esports Plc, you can compare the effects of market volatilities on PT Bank and Guild Esports 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 Guild Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Guild Esports.
Diversification Opportunities for PT Bank and Guild Esports
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PBCRF and Guild is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Guild Esports Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Esports Plc 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 Guild Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Esports Plc has no effect on the direction of PT Bank i.e., PT Bank and Guild Esports go up and down completely randomly.
Pair Corralation between PT Bank and Guild Esports
Assuming the 90 days horizon PT Bank Central is expected to under-perform the Guild Esports. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Bank Central is 10.75 times less risky than Guild Esports. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Guild Esports Plc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.27 in Guild Esports Plc on August 27, 2024 and sell it today you would earn a total of 0.50 from holding Guild Esports Plc or generate 185.19% 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. Guild Esports Plc
Performance |
| Timeline |
| PT Bank Central |
| Guild Esports Plc |
PT Bank and Guild Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Guild Esports
The main advantage of trading using opposite PT Bank and Guild Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Guild Esports 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 Guild Esports will offset losses from the drop in Guild Esports' long position.The idea behind PT Bank Central and Guild Esports Plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Guild Esports vs. ZoomerMedia Limited | Guild Esports vs. Celtic plc | Guild Esports vs. Network Media Group | Guild Esports vs. OverActive Media 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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