Correlation Between PT Bank and STHREE PLC

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PT Bank and STHREE PLC 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 STHREE PLC 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 STHREE PLC LS, you can compare the effects of market volatilities on PT Bank and STHREE PLC 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 STHREE PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and STHREE PLC.

Diversification Opportunities for PT Bank and STHREE PLC

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between PQ9 and STHREE is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and STHREE PLC LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STHREE PLC LS 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 STHREE PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STHREE PLC LS has no effect on the direction of PT Bank i.e., PT Bank and STHREE PLC go up and down completely randomly.

Pair Corralation between PT Bank and STHREE PLC

Assuming the 90 days horizon PT Bank Mandiri is expected to generate 2.38 times more return on investment than STHREE PLC. However, PT Bank is 2.38 times more volatile than STHREE PLC LS. It trades about 0.02 of its potential returns per unit of risk. STHREE PLC LS is currently generating about -0.22 per unit of risk. If you would invest  34.00  in PT Bank Mandiri on November 2, 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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

PT Bank Mandiri  vs.  STHREE PLC LS

 Performance 
       Timeline  
PT Bank Mandiri 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PT Bank Mandiri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
STHREE PLC LS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days STHREE PLC LS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PT Bank and STHREE PLC Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PT Bank and STHREE PLC

The main advantage of trading using opposite PT Bank and STHREE PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, STHREE PLC 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 STHREE PLC will offset losses from the drop in STHREE PLC's long position.
PT Bank vs. NAKED WINES PLC
PT Bank vs. Altair Engineering
PT Bank vs. IMPERIAL TOBACCO
PT Bank vs. VIVA WINE GROUP
The idea behind PT Bank Mandiri and STHREE PLC LS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
STHREE PLC vs. Recruit Holdings Co
STHREE PLC vs. Randstad NV
STHREE PLC vs. Adecco Group AG
STHREE PLC vs. PERSOL HOLDINGS LTD
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Equity Valuation
Check real value of public entities based on technical and fundamental data


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY