Correlation Between Bank Negara and Phoenix Biotech
Can any of the company-specific risk be diversified away by investing in both Bank Negara and Phoenix Biotech 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 Bank Negara and Phoenix Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Negara Indonesia and Phoenix Biotech Acquisition, you can compare the effects of market volatilities on Bank Negara and Phoenix Biotech 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 Bank Negara with a short position of Phoenix Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Phoenix Biotech.
Diversification Opportunities for Bank Negara and Phoenix Biotech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Phoenix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Phoenix Biotech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Biotech Acqu and Bank Negara 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 Bank Negara Indonesia are associated (or correlated) with Phoenix Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Biotech Acqu has no effect on the direction of Bank Negara i.e., Bank Negara and Phoenix Biotech go up and down completely randomly.
Pair Corralation between Bank Negara and Phoenix Biotech
If you would invest (100.00) in Phoenix Biotech Acquisition on December 5, 2024 and sell it today you would earn a total of 100.00 from holding Phoenix Biotech Acquisition or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bank Negara Indonesia vs. Phoenix Biotech Acquisition
Performance |
Timeline |
Bank Negara Indonesia |
Phoenix Biotech Acqu |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Negara and Phoenix Biotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Negara and Phoenix Biotech
The main advantage of trading using opposite Bank Negara and Phoenix Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, Phoenix Biotech 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 Phoenix Biotech will offset losses from the drop in Phoenix Biotech's long position.Bank Negara vs. Banco Bradesco SA | Bank Negara vs. Itau Unibanco Banco | Bank Negara vs. Lloyds Banking Group | Bank Negara vs. Deutsche Bank AG |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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