Correlation Between PT Bank and FABASOFT -
Can any of the company-specific risk be diversified away by investing in both PT Bank and FABASOFT - 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 FABASOFT - 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 FABASOFT Dusseldorf, you can compare the effects of market volatilities on PT Bank and FABASOFT - 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 FABASOFT -. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and FABASOFT -.
Diversification Opportunities for PT Bank and FABASOFT -
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PQ9 and FABASOFT is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and FABASOFT Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FABASOFT Dusseldorf 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 FABASOFT -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FABASOFT Dusseldorf has no effect on the direction of PT Bank i.e., PT Bank and FABASOFT - go up and down completely randomly.
Pair Corralation between PT Bank and FABASOFT -
Assuming the 90 days horizon PT Bank Mandiri is expected to under-perform the FABASOFT -. In addition to that, PT Bank is 4.16 times more volatile than FABASOFT Dusseldorf. It trades about -0.09 of its total potential returns per unit of risk. FABASOFT Dusseldorf is currently generating about -0.15 per unit of volatility. If you would invest 1,660 in FABASOFT Dusseldorf on October 17, 2024 and sell it today you would lose (50.00) from holding FABASOFT Dusseldorf or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Mandiri vs. FABASOFT Dusseldorf
Performance |
| Timeline |
| PT Bank Mandiri |
| FABASOFT Dusseldorf |
PT Bank and FABASOFT - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and FABASOFT -
The main advantage of trading using opposite PT Bank and FABASOFT - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, FABASOFT - 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 FABASOFT - will offset losses from the drop in FABASOFT -'s long position.| PT Bank vs. EAT WELL INVESTMENT | PT Bank vs. JLF INVESTMENT | PT Bank vs. GAMING FAC SA | PT Bank vs. Guangdong Investment Limited |
| FABASOFT - vs. SOLSTAD OFFSHORE NK | FABASOFT - vs. SIEM OFFSHORE NEW | FABASOFT - vs. SENECA FOODS A | FABASOFT - vs. Plastic Omnium |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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