Correlation Between PT Bank and Gncc Capital

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

Diversification Opportunities for PT Bank and Gncc Capital

-0.69

Correlation Coefficient

PT Bank  Gncc Capital

Excellent diversification

The 3 months correlation between BKRKF and Gncc is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Gncc Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gncc Capital 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 Gncc Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gncc Capital has no effect on the direction of PT Bank i.e., PT Bank and Gncc Capital go up and down completely randomly.

Pair Corralation between PT Bank and Gncc Capital

Assuming the 90 days horizon PT Bank Rakyat is expected to under-perform the Gncc Capital. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Bank Rakyat is 22.94 times less risky than Gncc Capital. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Gncc Capital is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Gncc Capital on September 3, 2024 and sell it today you would earn a total of  0.01  from holding Gncc Capital or generate 9.223372036854776E16% return on investment over 90 days.

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

PT Bank Rakyat  vs.  Gncc Capital

PT Bank Rakyat

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Bank Rakyat has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Gncc Capital

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gncc Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain fundamental indicators, Gncc Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Bank and Gncc Capital

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

The idea behind PT Bank Rakyat and Gncc Capital 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.