Correlation Between PT Bank and AmTrust Financial
Can any of the company-specific risk be diversified away by investing in both PT Bank and AmTrust Financial 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 AmTrust Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and AmTrust Financial Services, you can compare the effects of market volatilities on PT Bank and AmTrust Financial 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 AmTrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and AmTrust Financial.
Diversification Opportunities for PT Bank and AmTrust Financial
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between BKRKF and AmTrust is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and AmTrust Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmTrust Financial 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 Rakyat are associated (or correlated) with AmTrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmTrust Financial has no effect on the direction of PT Bank i.e., PT Bank and AmTrust Financial go up and down completely randomly.
Pair Corralation between PT Bank and AmTrust Financial
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 4.78 times more return on investment than AmTrust Financial. However, PT Bank is 4.78 times more volatile than AmTrust Financial Services. It trades about 0.06 of its potential returns per unit of risk. AmTrust Financial Services is currently generating about 0.0 per unit of risk. If you would invest 23.00 in PT Bank Rakyat on November 21, 2024 and sell it today you would earn a total of 1.00 from holding PT Bank Rakyat or generate 4.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 83.05% |
Values | Daily Returns |
PT Bank Rakyat vs. AmTrust Financial Services
Performance |
Timeline |
PT Bank Rakyat |
AmTrust Financial |
PT Bank and AmTrust Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Bank and AmTrust Financial
The main advantage of trading using opposite PT Bank and AmTrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, AmTrust Financial 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 AmTrust Financial will offset losses from the drop in AmTrust Financial's long position.PT Bank vs. Banco Bradesco SA | ||
PT Bank vs. Itau Unibanco Banco | ||
PT Bank vs. Lloyds Banking Group | ||
PT Bank vs. Deutsche Bank AG |
AmTrust Financial vs. AmTrust Financial Services | ||
AmTrust Financial vs. AmTrust Financial Services | ||
AmTrust Financial vs. AmTrust Financial Services | ||
AmTrust Financial vs. AmTrust Financial Services |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |