Correlation Between PT Bank and Target Global
Can any of the company-specific risk be diversified away by investing in both PT Bank and Target Global 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 Target Global 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 Target Global Acquisition, you can compare the effects of market volatilities on PT Bank and Target Global 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 Target Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Target Global.
Diversification Opportunities for PT Bank and Target Global
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PBCRF and Target is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Target Global Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target Global 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 Target Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target Global Acquisition has no effect on the direction of PT Bank i.e., PT Bank and Target Global go up and down completely randomly.
Pair Corralation between PT Bank and Target Global
Assuming the 90 days horizon PT Bank Central is expected to generate 4.03 times more return on investment than Target Global. However, PT Bank is 4.03 times more volatile than Target Global Acquisition. It trades about 0.06 of its potential returns per unit of risk. Target Global Acquisition is currently generating about 0.24 per unit of risk. If you would invest 57.00 in PT Bank Central on November 2, 2024 and sell it today you would earn a total of 2.00 from holding PT Bank Central or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Central vs. Target Global Acquisition
Performance |
| Timeline |
| PT Bank Central |
| Target Global Acquisition |
PT Bank and Target Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Target Global
The main advantage of trading using opposite PT Bank and Target Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Target Global 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 Target Global will offset losses from the drop in Target Global'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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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