Correlation Between PT Bank and SANUWAVE Health,

Can any of the company-specific risk be diversified away by investing in both PT Bank and SANUWAVE Health, 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 SANUWAVE Health, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Bank Central and SANUWAVE Health, Common, you can compare the effects of market volatilities on PT Bank and SANUWAVE Health, 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 SANUWAVE Health,. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and SANUWAVE Health,.

Diversification Opportunities for PT Bank and SANUWAVE Health,

-0.66

Correlation Coefficient

PT Bank  SANUWAVE Health,

Excellent diversification

The 3 months correlation between PBCRF and SANUWAVE is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and SANUWAVE Health, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANUWAVE Health, Common 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 Central are associated (or correlated) with SANUWAVE Health,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANUWAVE Health, Common has no effect on the direction of PT Bank i.e., PT Bank and SANUWAVE Health, go up and down completely randomly.

Pair Corralation between PT Bank and SANUWAVE Health,

Assuming the 90 days horizon PT Bank Central is expected to under-perform the SANUWAVE Health,. In addition to that, PT Bank is 1.21 times more volatile than SANUWAVE Health, Common. It trades about -0.01 of its total potential returns per unit of risk. SANUWAVE Health, Common is currently generating about 0.22 per unit of volatility. If you would invest  2,250  in SANUWAVE Health, Common on December 28, 2024 and sell it today you would earn a total of  1,478  from holding SANUWAVE Health, Common or generate 65.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

PT Bank Central  vs.  SANUWAVE Health, Common

PT Bank Central

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Bank Central 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.

SANUWAVE Health, Common

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SANUWAVE Health, Common are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, SANUWAVE Health, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Bank and SANUWAVE Health,

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

The idea behind PT Bank Central and SANUWAVE Health, Common 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.