Correlation Between PT Bank and Hong Kong
Can any of the company-specific risk be diversified away by investing in both PT Bank and Hong Kong 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 Hong Kong 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 Hong Kong Exchanges, you can compare the effects of market volatilities on PT Bank and Hong Kong 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 Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Hong Kong.
Diversification Opportunities for PT Bank and Hong Kong
Very good diversification
The 3 months correlation between PQ9 and Hong is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and Hong Kong Exchanges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Exchanges 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 Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Exchanges has no effect on the direction of PT Bank i.e., PT Bank and Hong Kong go up and down completely randomly.
Pair Corralation between PT Bank and Hong Kong
Assuming the 90 days horizon PT Bank Mandiri is expected to generate 1.91 times more return on investment than Hong Kong. However, PT Bank is 1.91 times more volatile than Hong Kong Exchanges. It trades about 0.03 of its potential returns per unit of risk. Hong Kong Exchanges is currently generating about 0.02 per unit of risk. If you would invest 36.00 in PT Bank Mandiri on September 13, 2024 and sell it today you would earn a total of 0.00 from holding PT Bank Mandiri or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Mandiri vs. Hong Kong Exchanges
Performance |
| Timeline |
| PT Bank Mandiri |
| Hong Kong Exchanges |
PT Bank and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Hong Kong
The main advantage of trading using opposite PT Bank and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| PT Bank vs. Corsair Gaming | PT Bank vs. ECHO INVESTMENT ZY | PT Bank vs. SEALED AIR | PT Bank vs. REINET INVESTMENTS SCA |
| Hong Kong vs. Internet Thailand PCL | Hong Kong vs. NorAm Drilling AS | Hong Kong vs. INTERSHOP Communications Aktiengesellschaft | Hong Kong vs. RYU Apparel |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |