Correlation Between PT Bank and Retail Holdings
Can any of the company-specific risk be diversified away by investing in both PT Bank and Retail Holdings 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 Retail Holdings 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 Retail Holdings NV, you can compare the effects of market volatilities on PT Bank and Retail Holdings 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 Retail Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Retail Holdings.
Diversification Opportunities for PT Bank and Retail Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKRKF and Retail is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Retail Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Holdings NV 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 Retail Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Holdings NV has no effect on the direction of PT Bank i.e., PT Bank and Retail Holdings go up and down completely randomly.
Pair Corralation between PT Bank and Retail Holdings
If you would invest 22.00 in PT Bank Rakyat on December 2, 2024 and sell it today you would earn a total of 2.00 from holding PT Bank Rakyat or generate 9.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
PT Bank Rakyat vs. Retail Holdings NV
Performance |
Timeline |
PT Bank Rakyat |
Retail Holdings NV |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PT Bank and Retail Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Bank and Retail Holdings
The main advantage of trading using opposite PT Bank and Retail Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Retail Holdings 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 Retail Holdings will offset losses from the drop in Retail Holdings' long position.PT Bank vs. HDFC Bank Limited | PT Bank vs. China Merchants Bank | PT Bank vs. China Merchants Bank | PT Bank vs. Fifth Third Bancorp |
Retail Holdings vs. Paragon Technologies | Retail Holdings vs. Surge Components | Retail Holdings vs. Risk George Inds | Retail Holdings vs. Ieh Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |