Correlation Between PT Bank and Tcnicas Reunidas
Can any of the company-specific risk be diversified away by investing in both PT Bank and Tcnicas Reunidas 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 Tcnicas Reunidas 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 Tcnicas Reunidas SA, you can compare the effects of market volatilities on PT Bank and Tcnicas Reunidas 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 Tcnicas Reunidas. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Tcnicas Reunidas.
Diversification Opportunities for PT Bank and Tcnicas Reunidas
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PBCRF and Tcnicas is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Tcnicas Reunidas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tcnicas Reunidas 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 Tcnicas Reunidas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tcnicas Reunidas has no effect on the direction of PT Bank i.e., PT Bank and Tcnicas Reunidas go up and down completely randomly.
Pair Corralation between PT Bank and Tcnicas Reunidas
Assuming the 90 days horizon PT Bank Central is expected to under-perform the Tcnicas Reunidas. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Bank Central is 2.47 times less risky than Tcnicas Reunidas. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Tcnicas Reunidas SA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 775.00 in Tcnicas Reunidas SA on August 28, 2024 and sell it today you would earn a total of 366.00 from holding Tcnicas Reunidas SA or generate 47.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Central vs. Tcnicas Reunidas SA
Performance |
| Timeline |
| PT Bank Central |
| Tcnicas Reunidas |
PT Bank and Tcnicas Reunidas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Tcnicas Reunidas
The main advantage of trading using opposite PT Bank and Tcnicas Reunidas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Tcnicas Reunidas 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 Tcnicas Reunidas will offset losses from the drop in Tcnicas Reunidas' long position.The idea behind PT Bank Central and Tcnicas Reunidas SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Tcnicas Reunidas vs. Babcock International Group | Tcnicas Reunidas vs. Babcock International Group | Tcnicas Reunidas vs. China State Construction | Tcnicas Reunidas vs. Bouygues SA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |