Correlation Between PT Bank and Blackstone
Can any of the company-specific risk be diversified away by investing in both PT Bank and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on PT Bank and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Blackstone.
Diversification Opportunities for PT Bank and Blackstone
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PQ9 and Blackstone is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of PT Bank i.e., PT Bank and Blackstone go up and down completely randomly.
Pair Corralation between PT Bank and Blackstone
Assuming the 90 days horizon PT Bank is expected to generate 2.42 times less return on investment than Blackstone. In addition to that, PT Bank is 2.37 times more volatile than Blackstone Group. It trades about 0.04 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.22 per unit of volatility. If you would invest 10,811 in Blackstone Group on September 1, 2024 and sell it today you would earn a total of 7,309 from holding Blackstone Group or generate 67.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Mandiri vs. Blackstone Group
Performance |
| Timeline |
| PT Bank Mandiri |
| Blackstone Group |
PT Bank and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Blackstone
The main advantage of trading using opposite PT Bank and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| PT Bank vs. CODERE ONLINE LUX | PT Bank vs. Sumitomo Chemical | PT Bank vs. British American Tobacco | PT Bank vs. TIANDE CHEMICAL |
| Blackstone vs. National Retail Properties | Blackstone vs. Amkor Technology | Blackstone vs. Fast Retailing Co | Blackstone vs. SMA Solar Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |