Correlation Between PT Bank and Worldwide Webb

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

Diversification Opportunities for PT Bank and Worldwide Webb

-0.62

Correlation Coefficient

PT Bank  Worldwide Webb

Excellent diversification

The 3 months correlation between BKRKF and Worldwide is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Worldwide Webb Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldwide Webb Acqui 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 Worldwide Webb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldwide Webb Acqui has no effect on the direction of PT Bank i.e., PT Bank and Worldwide Webb go up and down completely randomly.

Pair Corralation between PT Bank and Worldwide Webb

If you would invest  27.00  in PT Bank Rakyat on September 17, 2024 and sell it today you would lose (1.00) from holding PT Bank Rakyat or give up 3.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

PT Bank Rakyat  vs.  Worldwide Webb Acquisition

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 latest weak performance, the Stock's forward-looking signals remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Worldwide Webb Acqui

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Worldwide Webb Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Worldwide Webb is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with PT Bank and Worldwide Webb

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

The idea behind PT Bank Rakyat and Worldwide Webb Acquisition 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..