Correlation Between Bank Negara and Praxsyn Corp
Can any of the company-specific risk be diversified away by investing in both Bank Negara and Praxsyn Corp 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 Bank Negara and Praxsyn Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Negara Indonesia and Praxsyn Corp, you can compare the effects of market volatilities on Bank Negara and Praxsyn Corp 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 Bank Negara with a short position of Praxsyn Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Praxsyn Corp.
Diversification Opportunities for Bank Negara and Praxsyn Corp
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Praxsyn is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Praxsyn Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxsyn Corp and Bank Negara 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 Bank Negara Indonesia are associated (or correlated) with Praxsyn Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxsyn Corp has no effect on the direction of Bank Negara i.e., Bank Negara and Praxsyn Corp go up and down completely randomly.
Pair Corralation between Bank Negara and Praxsyn Corp
If you would invest 1,300 in Bank Negara Indonesia on October 21, 2024 and sell it today you would earn a total of 90.00 from holding Bank Negara Indonesia or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Negara Indonesia vs. Praxsyn Corp
Performance |
| Timeline |
| Bank Negara Indonesia |
| Praxsyn Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Negara and Praxsyn Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Negara and Praxsyn Corp
The main advantage of trading using opposite Bank Negara and Praxsyn Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, Praxsyn Corp 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 Praxsyn Corp will offset losses from the drop in Praxsyn Corp's long position.| Bank Negara vs. Banco Bradesco SA | Bank Negara vs. Itau Unibanco Banco | Bank Negara vs. Lloyds Banking Group | Bank Negara vs. Deutsche Bank AG |
| Praxsyn Corp vs. Goosehead Insurance | Praxsyn Corp vs. Apartment Investment and | Praxsyn Corp vs. Guangdong Investment Limited | Praxsyn Corp vs. Canlan Ice Sports |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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