Correlation Between PT Bank and AMP
Can any of the company-specific risk be diversified away by investing in both PT Bank and AMP 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 AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and AMP, you can compare the effects of market volatilities on PT Bank and AMP 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 AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and AMP.
Diversification Opportunities for PT Bank and AMP
Pay attention - limited upside
The 3 months correlation between BKRKF and AMP is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP 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 Rakyat are associated (or correlated) with AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of PT Bank i.e., PT Bank and AMP go up and down completely randomly.
Pair Corralation between PT Bank and AMP
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 2.78 times more return on investment than AMP. However, PT Bank is 2.78 times more volatile than AMP. It trades about 0.04 of its potential returns per unit of risk. AMP is currently generating about 0.0 per unit of risk. If you would invest 26.00 in PT Bank Rakyat on March 3, 2024 and sell it today you would earn a total of 4.00 from holding PT Bank Rakyat or generate 15.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.15% |
Values | Daily Returns |
PT Bank Rakyat vs. AMP
Performance |
Timeline |
PT Bank Rakyat |
AMP |
PT Bank and AMP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Bank and AMP
The main advantage of trading using opposite PT Bank and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.PT Bank vs. Danske Bank AS | PT Bank vs. Barloworld Ltd ADR | PT Bank vs. Via Renewables | PT Bank vs. T Rowe Price |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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