Correlation Between PT Bank and First Quantum
Can any of the company-specific risk be diversified away by investing in both PT Bank and First Quantum 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 First Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Mandiri and First Quantum Minerals, you can compare the effects of market volatilities on PT Bank and First Quantum 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 First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and First Quantum.
Diversification Opportunities for PT Bank and First Quantum
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PQ9 and First is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and First Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Quantum Minerals 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 Mandiri are associated (or correlated) with First Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Quantum Minerals has no effect on the direction of PT Bank i.e., PT Bank and First Quantum go up and down completely randomly.
Pair Corralation between PT Bank and First Quantum
Assuming the 90 days horizon PT Bank Mandiri is expected to under-perform the First Quantum. In addition to that, PT Bank is 1.38 times more volatile than First Quantum Minerals. It trades about -0.03 of its total potential returns per unit of risk. First Quantum Minerals is currently generating about 0.15 per unit of volatility. If you would invest 1,050 in First Quantum Minerals on September 12, 2024 and sell it today you would earn a total of 309.00 from holding First Quantum Minerals or generate 29.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PT Bank Mandiri vs. First Quantum Minerals
Performance |
Timeline |
PT Bank Mandiri |
First Quantum Minerals |
PT Bank and First Quantum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Bank and First Quantum
The main advantage of trading using opposite PT Bank and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, First Quantum 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 First Quantum will offset losses from the drop in First Quantum's long position.PT Bank vs. China Merchants Bank | PT Bank vs. HDFC Bank Limited | PT Bank vs. ICICI Bank Limited | PT Bank vs. PT Bank Central |
First Quantum vs. Microbot Medical | First Quantum vs. CyberArk Software | First Quantum vs. AXWAY SOFTWARE EO | First Quantum vs. Luckin Coffee |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |