Correlation Between PT Bank and Core Natural

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

Diversification Opportunities for PT Bank and Core Natural

-0.45

Correlation Coefficient

PT Bank  Core Natural

Very good diversification

The 3 months correlation between PBCRF and Core is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Core Natural Resources, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Natural Resources, 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 Core Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Natural Resources, has no effect on the direction of PT Bank i.e., PT Bank and Core Natural go up and down completely randomly.

Pair Corralation between PT Bank and Core Natural

Assuming the 90 days horizon PT Bank Central is expected to under-perform the Core Natural. In addition to that, PT Bank is 1.2 times more volatile than Core Natural Resources,. It trades about -0.01 of its total potential returns per unit of risk. Core Natural Resources, is currently generating about 0.11 per unit of volatility. If you would invest  7,722  in Core Natural Resources, on July 19, 2025 and sell it today you would earn a total of  1,567  from holding Core Natural Resources, or generate 20.29% return on investment over 90 days.

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

PT Bank Central  vs.  Core Natural Resources,

PT Bank Central

Risk-Adjusted Performance

Weakest

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.

Core Natural Resources,

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Core Natural Resources, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Core Natural reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Bank and Core Natural

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

The idea behind PT Bank Central and Core Natural Resources, 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.