Correlation Between PT Bank and Landcadia Holdings
Can any of the company-specific risk be diversified away by investing in both PT Bank and Landcadia Holdings 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 Landcadia Holdings 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 Landcadia Holdings II, you can compare the effects of market volatilities on PT Bank and Landcadia Holdings 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 Landcadia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Landcadia Holdings.
Diversification Opportunities for PT Bank and Landcadia Holdings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PBCRF and Landcadia is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Landcadia Holdings II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landcadia Holdings 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 Landcadia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landcadia Holdings has no effect on the direction of PT Bank i.e., PT Bank and Landcadia Holdings go up and down completely randomly.
Pair Corralation between PT Bank and Landcadia Holdings
If you would invest 57.00 in PT Bank Central on September 1, 2024 and sell it today you would earn a total of 10.00 from holding PT Bank Central or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.38% |
| Values | Daily Returns |
PT Bank Central vs. Landcadia Holdings II
Performance |
| Timeline |
| PT Bank Central |
| Landcadia Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Landcadia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Landcadia Holdings
The main advantage of trading using opposite PT Bank and Landcadia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Landcadia Holdings 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 Landcadia Holdings will offset losses from the drop in Landcadia Holdings' 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 |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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