Correlation Between PT Bank and MAANSHAN IRON
Can any of the company-specific risk be diversified away by investing in both PT Bank and MAANSHAN IRON 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 MAANSHAN IRON 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 MAANSHAN IRON H , you can compare the effects of market volatilities on PT Bank and MAANSHAN IRON 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 MAANSHAN IRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and MAANSHAN IRON.
Diversification Opportunities for PT Bank and MAANSHAN IRON
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYRA and MAANSHAN is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and MAANSHAN IRON H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAANSHAN IRON 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 MAANSHAN IRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAANSHAN IRON H has no effect on the direction of PT Bank i.e., PT Bank and MAANSHAN IRON go up and down completely randomly.
Pair Corralation between PT Bank and MAANSHAN IRON
Assuming the 90 days trading horizon PT Bank is expected to generate 3.18 times less return on investment than MAANSHAN IRON. In addition to that, PT Bank is 1.18 times more volatile than MAANSHAN IRON H . It trades about 0.07 of its total potential returns per unit of risk. MAANSHAN IRON H is currently generating about 0.25 per unit of volatility. If you would invest 17.00 in MAANSHAN IRON H on October 26, 2024 and sell it today you would earn a total of 4.00 from holding MAANSHAN IRON H or generate 23.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PT Bank Rakyat vs. MAANSHAN IRON H
Performance |
Timeline |
PT Bank Rakyat |
MAANSHAN IRON H |
PT Bank and MAANSHAN IRON Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Bank and MAANSHAN IRON
The main advantage of trading using opposite PT Bank and MAANSHAN IRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, MAANSHAN IRON 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 MAANSHAN IRON will offset losses from the drop in MAANSHAN IRON's long position.PT Bank vs. GRIFFIN MINING LTD | PT Bank vs. Yuexiu Transport Infrastructure | PT Bank vs. DICKS Sporting Goods | PT Bank vs. MCEWEN MINING INC |
MAANSHAN IRON vs. RCS MediaGroup SpA | MAANSHAN IRON vs. Nexstar Media Group | MAANSHAN IRON vs. MagnaChip Semiconductor Corp | MAANSHAN IRON vs. Nordic Semiconductor ASA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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