Correlation Between PT Bank and Guskin Gold
Can any of the company-specific risk be diversified away by investing in both PT Bank and Guskin Gold 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 Guskin Gold 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 Guskin Gold Corp, you can compare the effects of market volatilities on PT Bank and Guskin Gold 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 Guskin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Guskin Gold.
Diversification Opportunities for PT Bank and Guskin Gold
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKRKF and Guskin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Guskin Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guskin Gold Corp 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 Guskin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guskin Gold Corp has no effect on the direction of PT Bank i.e., PT Bank and Guskin Gold go up and down completely randomly.
Pair Corralation between PT Bank and Guskin Gold
If you would invest 0.01 in Guskin Gold Corp on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Guskin Gold Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
PT Bank Rakyat vs. Guskin Gold Corp
Performance |
Timeline |
PT Bank Rakyat |
Guskin Gold Corp |
PT Bank and Guskin Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Bank and Guskin Gold
The main advantage of trading using opposite PT Bank and Guskin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Guskin Gold 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 Guskin Gold will offset losses from the drop in Guskin Gold's long position.PT Bank vs. Bank Mandiri Persero | PT Bank vs. Piraeus Bank SA | PT Bank vs. Eurobank Ergasias Services | PT Bank vs. Kasikornbank Public Co |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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