Correlation Between PT Bank and RTL Group
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By analyzing existing cross correlation between PT Bank Mandiri and RTL Group SA, you can compare the effects of market volatilities on PT Bank and RTL Group 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 RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and RTL Group.
Diversification Opportunities for PT Bank and RTL Group
Poor diversification
The 3 months correlation between PQ9 and RTL is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA 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 RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of PT Bank i.e., PT Bank and RTL Group go up and down completely randomly.
Pair Corralation between PT Bank and RTL Group
Assuming the 90 days horizon PT Bank Mandiri is expected to generate 2.79 times more return on investment than RTL Group. However, PT Bank is 2.79 times more volatile than RTL Group SA. It trades about 0.04 of its potential returns per unit of risk. RTL Group SA is currently generating about -0.11 per unit of risk. If you would invest 32.00 in PT Bank Mandiri on September 1, 2024 and sell it today you would earn a total of 3.00 from holding PT Bank Mandiri or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Mandiri vs. RTL Group SA
Performance |
| Timeline |
| PT Bank Mandiri |
| RTL Group SA |
PT Bank and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and RTL Group
The main advantage of trading using opposite PT Bank and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, RTL Group 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 RTL Group will offset losses from the drop in RTL Group'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 |
| RTL Group vs. Performance Food Group | RTL Group vs. Mitsubishi Gas Chemical | RTL Group vs. PREMIER FOODS | RTL Group vs. CHEMICAL INDUSTRIES |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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