Correlation Between 7GC Holdings and PT Bank

Can any of the company-specific risk be diversified away by investing in both 7GC Holdings and PT Bank 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 7GC Holdings and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 7GC Holdings Co and PT Bank Rakyat, you can compare the effects of market volatilities on 7GC Holdings and PT Bank 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 7GC Holdings with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of 7GC Holdings and PT Bank.

Diversification Opportunities for 7GC Holdings and PT Bank

-0.38

Correlation Coefficient

7GC Holdings  PT Bank

Very good diversification

The 3 months correlation between 7GC and BKRKF is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding 7GC Holdings Co and PT Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Rakyat and 7GC Holdings 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 7GC Holdings Co are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Rakyat has no effect on the direction of 7GC Holdings i.e., 7GC Holdings and PT Bank go up and down completely randomly.

Pair Corralation between 7GC Holdings and PT Bank

If you would invest  1,047  in 7GC Holdings Co on September 3, 2024 and sell it today you would earn a total of  0.00  from holding 7GC Holdings Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

7GC Holdings Co  vs.  PT Bank Rakyat

7GC Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 7GC Holdings Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, 7GC Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

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.

Pair Trading with 7GC Holdings and PT Bank

The main advantage of trading using opposite 7GC Holdings and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 7GC Holdings position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.

The idea behind 7GC Holdings Co and PT Bank Rakyat 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.