Correlation Between PT Bank and PepperLime Health
Can any of the company-specific risk be diversified away by investing in both PT Bank and PepperLime Health 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 PepperLime Health 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 PepperLime Health Acquisition, you can compare the effects of market volatilities on PT Bank and PepperLime Health 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 PepperLime Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and PepperLime Health.
Diversification Opportunities for PT Bank and PepperLime Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PBCRF and PepperLime is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and PepperLime Health Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepperLime Health 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 PepperLime Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PepperLime Health has no effect on the direction of PT Bank i.e., PT Bank and PepperLime Health go up and down completely randomly.
Pair Corralation between PT Bank and PepperLime Health
Assuming the 90 days horizon PT Bank is expected to generate 33.4 times less return on investment than PepperLime Health. But when comparing it to its historical volatility, PT Bank Central is 7.98 times less risky than PepperLime Health. It trades about 0.02 of its potential returns per unit of risk. PepperLime Health Acquisition is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9.50 in PepperLime Health Acquisition on November 2, 2024 and sell it today you would lose (4.75) from holding PepperLime Health Acquisition or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 16.05% |
| Values | Daily Returns |
PT Bank Central vs. PepperLime Health Acquisition
Performance |
| Timeline |
| PT Bank Central |
| PepperLime Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and PepperLime Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and PepperLime Health
The main advantage of trading using opposite PT Bank and PepperLime Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, PepperLime Health 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 PepperLime Health will offset losses from the drop in PepperLime Health's long position.| PT Bank vs. Commercial International Bank | PT Bank vs. Caixabank SA ADR | PT Bank vs. Bank Rakyat | PT Bank vs. Lloyds Banking Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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