Correlation Between PT Bank and DBV Technologies

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

Diversification Opportunities for PT Bank and DBV Technologies

-0.39

Correlation Coefficient

PT Bank  DBV Technologies

Very good diversification

The 3 months correlation between PBCRF and DBV is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and DBV Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies 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 DBV Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBV Technologies has no effect on the direction of PT Bank i.e., PT Bank and DBV Technologies go up and down completely randomly.

Pair Corralation between PT Bank and DBV Technologies

Assuming the 90 days horizon PT Bank Central is expected to generate 0.63 times more return on investment than DBV Technologies. However, PT Bank Central is 1.59 times less risky than DBV Technologies. It trades about -0.03 of its potential returns per unit of risk. DBV Technologies is currently generating about -0.02 per unit of risk. If you would invest  52.00  in PT Bank Central on May 14, 2025 and sell it today you would lose (5.00) from holding PT Bank Central or give up 9.62% of portfolio value over 90 days.

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

PT Bank Central  vs.  DBV Technologies

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 latest fragile 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.

DBV Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days DBV Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with PT Bank and DBV Technologies

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

The idea behind PT Bank Central and DBV Technologies 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.