Correlation Between PT Bank and SYN Prop

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

Diversification Opportunities for PT Bank and SYN Prop

-0.62

Correlation Coefficient

PT Bank  SYN Prop

Excellent diversification

The 3 months correlation between PBCRF and SYN is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and SYN prop e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN prop e 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 SYN Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN prop e has no effect on the direction of PT Bank i.e., PT Bank and SYN Prop go up and down completely randomly.

Pair Corralation between PT Bank and SYN Prop

Assuming the 90 days horizon PT Bank is expected to generate 4.47 times less return on investment than SYN Prop. But when comparing it to its historical volatility, PT Bank Central is 1.42 times less risky than SYN Prop. It trades about 0.02 of its potential returns per unit of risk. SYN prop e is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  112.00  in SYN prop e on September 30, 2024 and sell it today you would earn a total of  414.00  from holding SYN prop e or generate 369.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.0%
Values	Daily Returns

PT Bank Central  vs.  SYN prop e

PT Bank Central

Risk-Adjusted Performance

0 of 100

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 latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

SYN prop e

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SYN prop e are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, SYN Prop showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Bank and SYN Prop

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

The idea behind PT Bank Central and SYN prop e 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.