Correlation Between PT Bank and LIV Capital
Can any of the company-specific risk be diversified away by investing in both PT Bank and LIV Capital 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 LIV Capital 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 LIV Capital Acquisition, you can compare the effects of market volatilities on PT Bank and LIV Capital 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 LIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and LIV Capital.
Diversification Opportunities for PT Bank and LIV Capital
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PBCRF and LIV is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and LIV Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIV Capital Acquisition 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 LIV Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIV Capital Acquisition has no effect on the direction of PT Bank i.e., PT Bank and LIV Capital go up and down completely randomly.
Pair Corralation between PT Bank and LIV Capital
If you would invest 59.00 in PT Bank Central on September 1, 2024 and sell it today you would earn a total of 8.00 from holding PT Bank Central or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.54% |
| Values | Daily Returns |
PT Bank Central vs. LIV Capital Acquisition
Performance |
| Timeline |
| PT Bank Central |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and LIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and LIV Capital
The main advantage of trading using opposite PT Bank and LIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, LIV Capital 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 LIV Capital will offset losses from the drop in LIV Capital'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 |
| LIV Capital vs. IX Acquisition Corp | LIV Capital vs. LatAmGrowth SPAC | LIV Capital vs. Portage Fintech Acquisition | LIV Capital vs. Swiftmerge Acquisition 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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