Correlation Between PT Bank and Zoom Video
Can any of the company-specific risk be diversified away by investing in both PT Bank and Zoom Video 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 Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Mandiri and Zoom Video Communications, you can compare the effects of market volatilities on PT Bank and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Zoom Video.
Diversification Opportunities for PT Bank and Zoom Video
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PQ9 and Zoom is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Mandiri are associated (or correlated) with Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of PT Bank i.e., PT Bank and Zoom Video go up and down completely randomly.
Pair Corralation between PT Bank and Zoom Video
Assuming the 90 days horizon PT Bank is expected to generate 5.44 times less return on investment than Zoom Video. In addition to that, PT Bank is 1.96 times more volatile than Zoom Video Communications. It trades about 0.02 of its total potential returns per unit of risk. Zoom Video Communications is currently generating about 0.19 per unit of volatility. If you would invest 5,071 in Zoom Video Communications on November 3, 2024 and sell it today you would earn a total of 3,333 from holding Zoom Video Communications or generate 65.73% 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 Mandiri vs. Zoom Video Communications
Performance |
| Timeline |
| PT Bank Mandiri |
| Zoom Video Communications |
PT Bank and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Zoom Video
The main advantage of trading using opposite PT Bank and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| PT Bank vs. National Health Investors | PT Bank vs. Cardinal Health | PT Bank vs. SPORTING | PT Bank vs. BII Railway Transportation |
| Zoom Video vs. NH HOTEL GROUP | Zoom Video vs. Allegheny Technologies Incorporated | Zoom Video vs. Addtech AB | Zoom Video vs. InterContinental Hotels 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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