Correlation Between First Physicians and PT Bank
Can any of the company-specific risk be diversified away by investing in both First Physicians and PT Bank 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 First Physicians and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Physicians Capital and PT Bank Rakyat, you can compare the effects of market volatilities on First Physicians and PT Bank 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 First Physicians with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Physicians and PT Bank.
Diversification Opportunities for First Physicians and PT Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and BKRKF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Physicians Capital and PT Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Rakyat and First Physicians 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 First Physicians Capital are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Rakyat has no effect on the direction of First Physicians i.e., First Physicians and PT Bank go up and down completely randomly.
Pair Corralation between First Physicians and PT Bank
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 | 81.54% |
Values | Daily Returns |
First Physicians Capital vs. PT Bank Rakyat
Performance |
Timeline |
First Physicians Capital |
PT Bank Rakyat |
First Physicians and PT Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Physicians and PT Bank
The main advantage of trading using opposite First Physicians and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Physicians position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.First Physicians vs. BlackRock Science Tech | First Physicians vs. Virtus Allianzgi Artificial | First Physicians vs. Highland Floating Rate | First Physicians vs. BlackRock Science and |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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