Correlation Between PT Bank and Signature Bank
Can any of the company-specific risk be diversified away by investing in both PT Bank and Signature Bank 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 Signature Bank 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 Signature Bank, you can compare the effects of market volatilities on PT Bank and Signature Bank 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 Signature Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Signature Bank.
Diversification Opportunities for PT Bank and Signature Bank
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PBCRF and Signature is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Signature Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature Bank 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 Signature Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Bank has no effect on the direction of PT Bank i.e., PT Bank and Signature Bank go up and down completely randomly.
Pair Corralation between PT Bank and Signature Bank
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 | Insignificant |
| Accuracy | 0.38% |
| Values | Daily Returns |
PT Bank Central vs. Signature Bank
Performance |
| Timeline |
| PT Bank Central |
| Signature Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bank and Signature Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Signature Bank
The main advantage of trading using opposite PT Bank and Signature Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Signature Bank 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 Signature Bank will offset losses from the drop in Signature Bank'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 |
| Signature Bank vs. Zions Bancorporation | Signature Bank vs. KeyCorp | Signature Bank vs. Comerica | Signature Bank vs. First Horizon National |
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 Stocks Directory module to find actively traded stocks across global markets.
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