Correlation Between PT Bank and SCOR SE
Can any of the company-specific risk be diversified away by investing in both PT Bank and SCOR SE 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 SCOR SE 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 SCOR SE, you can compare the effects of market volatilities on PT Bank and SCOR SE 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 SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and SCOR SE.
Diversification Opportunities for PT Bank and SCOR SE
Very good diversification
The 3 months correlation between PQ9 and SCOR is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE 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 SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of PT Bank i.e., PT Bank and SCOR SE go up and down completely randomly.
Pair Corralation between PT Bank and SCOR SE
Assuming the 90 days horizon PT Bank Mandiri is expected to generate 2.06 times more return on investment than SCOR SE. However, PT Bank is 2.06 times more volatile than SCOR SE. It trades about 0.03 of its potential returns per unit of risk. SCOR SE is currently generating about 0.03 per unit of risk. If you would invest 31.00 in PT Bank Mandiri on November 5, 2024 and sell it today you would earn a total of 4.00 from holding PT Bank Mandiri or generate 12.9% 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. SCOR SE
Performance |
| Timeline |
| PT Bank Mandiri |
| SCOR SE |
PT Bank and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and SCOR SE
The main advantage of trading using opposite PT Bank and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.| PT Bank vs. United Natural Foods | PT Bank vs. Suntory Beverage Food | PT Bank vs. Tyson Foods | PT Bank vs. THAI BEVERAGE |
| SCOR SE vs. SIDETRADE EO 1 | SCOR SE vs. FAST RETAIL ADR | SCOR SE vs. Renesas Electronics | SCOR SE vs. KIMBALL ELECTRONICS |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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