Correlation Between PT Bank and SITE Centers
Can any of the company-specific risk be diversified away by investing in both PT Bank and SITE Centers 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 SITE Centers 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 SITE Centers Corp, you can compare the effects of market volatilities on PT Bank and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and SITE Centers.
Diversification Opportunities for PT Bank and SITE Centers
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PBCRF and SITE is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of PT Bank i.e., PT Bank and SITE Centers go up and down completely randomly.
Pair Corralation between PT Bank and SITE Centers
Assuming the 90 days horizon PT Bank Central is expected to under-perform the SITE Centers. In addition to that, PT Bank is 48.5 times more volatile than SITE Centers Corp. It trades about -0.09 of its total potential returns per unit of risk. SITE Centers Corp is currently generating about 0.07 per unit of volatility. If you would invest 2,514 in SITE Centers Corp on September 5, 2024 and sell it today you would earn a total of 2.00 from holding SITE Centers Corp or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
PT Bank Central vs. SITE Centers Corp
Performance |
| Timeline |
| PT Bank Central |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
PT Bank and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and SITE Centers
The main advantage of trading using opposite PT Bank and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' 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 |
| SITE Centers vs. The Gabelli Multimedia | SITE Centers vs. The Gabelli Equity | SITE Centers vs. Virtus AllianzGI Convertible | SITE Centers vs. John Hancock Income |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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