Correlation Between PT Bank and Capcom

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

Diversification Opportunities for PT Bank and Capcom

-0.38

Correlation Coefficient

PT Bank  Capcom

Very good diversification

The 3 months correlation between PBCRF and Capcom is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Capcom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capcom 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 Capcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capcom has no effect on the direction of PT Bank i.e., PT Bank and Capcom go up and down completely randomly.

Pair Corralation between PT Bank and Capcom

Assuming the 90 days horizon PT Bank Central is expected to under-perform the Capcom. In addition to that, PT Bank is 1.42 times more volatile than Capcom Co. It trades about -0.02 of its total potential returns per unit of risk. Capcom Co is currently generating about 0.05 per unit of volatility. If you would invest  2,718  in Capcom Co on May 3, 2025 and sell it today you would earn a total of  165.00  from holding Capcom Co or generate 6.07% return on investment over 90 days.

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

PT Bank Central  vs.  Capcom Co

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.

Capcom

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Capcom Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Capcom may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with PT Bank and Capcom

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

The idea behind PT Bank Central and Capcom Co 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.