Correlation Between PT Bank and CITIC SECURITIES-H-

Can any of the company-specific risk be diversified away by investing in both PT Bank and CITIC SECURITIES-H- 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 CITIC SECURITIES-H- 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 CITIC SECURITIES H , you can compare the effects of market volatilities on PT Bank and CITIC SECURITIES-H- 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 CITIC SECURITIES-H-. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and CITIC SECURITIES-H-.

Diversification Opportunities for PT Bank and CITIC SECURITIES-H-

0.0

Correlation Coefficient

PT Bank  CITIC SECURITIES-H-

Pay attention - limited upside

The 3 months correlation between BYRA and CITIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and CITIC SECURITIES H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC SECURITIES-H- 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 CITIC SECURITIES-H-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC SECURITIES-H- has no effect on the direction of PT Bank i.e., PT Bank and CITIC SECURITIES-H- go up and down completely randomly.

Pair Corralation between PT Bank and CITIC SECURITIES-H-

If you would invest  0.00  in CITIC SECURITIES H on December 20, 2024 and sell it today you would earn a total of  0.00  from holding CITIC SECURITIES H or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

PT Bank Rakyat  vs.  CITIC SECURITIES H

PT Bank Rakyat

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Bank Rakyat has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PT Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CITIC SECURITIES-H-

Risk-Adjusted Performance

Very Weak

Over the last 90 days CITIC SECURITIES H has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CITIC SECURITIES-H- is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PT Bank and CITIC SECURITIES-H-

The main advantage of trading using opposite PT Bank and CITIC SECURITIES-H- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, CITIC SECURITIES-H- 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 CITIC SECURITIES-H- will offset losses from the drop in CITIC SECURITIES-H-'s long position.

The idea behind PT Bank Rakyat and CITIC SECURITIES H 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.