Correlation Between PT Bank and Apple
Can any of the company-specific risk be diversified away by investing in both PT Bank and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on PT Bank and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Apple.
Diversification Opportunities for PT Bank and Apple
Excellent diversification
The 3 months correlation between PQ9 and Apple is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of PT Bank i.e., PT Bank and Apple go up and down completely randomly.
Pair Corralation between PT Bank and Apple
Assuming the 90 days horizon PT Bank Mandiri is expected to under-perform the Apple. In addition to that, PT Bank is 1.94 times more volatile than Apple Inc. It trades about -0.09 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.06 per unit of volatility. If you would invest 21,599 in Apple Inc on August 27, 2024 and sell it today you would earn a total of 341.00 from holding Apple Inc or generate 1.58% 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. Apple Inc
Performance |
| Timeline |
| PT Bank Mandiri |
| Apple Inc |
PT Bank and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Apple
The main advantage of trading using opposite PT Bank and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| PT Bank vs. Lamar Advertising | PT Bank vs. JD SPORTS FASH | PT Bank vs. PLAYTIKA HOLDING DL 01 | PT Bank vs. LG Display Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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