Correlation Between PT Bank and Janel Corp
Can any of the company-specific risk be diversified away by investing in both PT Bank and Janel Corp 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 Janel Corp 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 Janel Corp, you can compare the effects of market volatilities on PT Bank and Janel Corp 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 Janel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Janel Corp.
Diversification Opportunities for PT Bank and Janel Corp
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PBCRF and Janel is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Janel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janel Corp 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 Janel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janel Corp has no effect on the direction of PT Bank i.e., PT Bank and Janel Corp go up and down completely randomly.
Pair Corralation between PT Bank and Janel Corp
Assuming the 90 days horizon PT Bank Central is expected to generate 1.45 times more return on investment than Janel Corp. However, PT Bank is 1.45 times more volatile than Janel Corp. It trades about 0.05 of its potential returns per unit of risk. Janel Corp is currently generating about -0.06 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 Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
PT Bank Central vs. Janel Corp
Performance |
| Timeline |
| PT Bank Central |
| Janel Corp |
PT Bank and Janel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Janel Corp
The main advantage of trading using opposite PT Bank and Janel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Janel Corp 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 Janel Corp will offset losses from the drop in Janel Corp'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 |
| Janel Corp vs. FedEx | Janel Corp vs. GXO Logistics | Janel Corp vs. JB Hunt Transport | Janel Corp vs. Expeditors International of |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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