Correlation Between Pt Pakuan and Bank Ocbc
Can any of the company-specific risk be diversified away by investing in both Pt Pakuan and Bank Ocbc 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 Pakuan and Bank Ocbc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pt Pakuan Tbk and Bank Ocbc Nisp, you can compare the effects of market volatilities on Pt Pakuan and Bank Ocbc 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 Pakuan with a short position of Bank Ocbc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pakuan and Bank Ocbc.
Diversification Opportunities for Pt Pakuan and Bank Ocbc
Excellent diversification
The 3 months correlation between UANG and Bank is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pakuan Tbk and Bank Ocbc Nisp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ocbc Nisp and Pt Pakuan 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 Pakuan Tbk are associated (or correlated) with Bank Ocbc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ocbc Nisp has no effect on the direction of Pt Pakuan i.e., Pt Pakuan and Bank Ocbc go up and down completely randomly.
Pair Corralation between Pt Pakuan and Bank Ocbc
Assuming the 90 days trading horizon Pt Pakuan Tbk is expected to generate 1.98 times more return on investment than Bank Ocbc. However, Pt Pakuan is 1.98 times more volatile than Bank Ocbc Nisp. It trades about -0.04 of its potential returns per unit of risk. Bank Ocbc Nisp is currently generating about -0.16 per unit of risk. If you would invest 56,500 in Pt Pakuan Tbk on February 5, 2024 and sell it today you would lose (2,000) from holding Pt Pakuan Tbk or give up 3.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pt Pakuan Tbk vs. Bank Ocbc Nisp
Performance |
Timeline |
Pt Pakuan Tbk |
Bank Ocbc Nisp |
Pt Pakuan and Bank Ocbc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pt Pakuan and Bank Ocbc
The main advantage of trading using opposite Pt Pakuan and Bank Ocbc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pakuan position performs unexpectedly, Bank Ocbc 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 Bank Ocbc will offset losses from the drop in Bank Ocbc's long position.Pt Pakuan vs. Perintis Triniti PropertiPT | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo AdipersadaTbk Pt | Pt Pakuan vs. Jaya Sukses Makmur |
Bank Ocbc vs. Bank Mega Tbk | Bank Ocbc vs. Bank Pan Indonesia | Bank Ocbc vs. Bank Permata Tbk | Bank Ocbc vs. Bank Cimb Niaga |
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 Directory module to find actively traded commodities issued by global exchanges.
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