Correlation Between PT Bank and Cable One
Can any of the company-specific risk be diversified away by investing in both PT Bank and Cable One 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 Cable One 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 Cable One, you can compare the effects of market volatilities on PT Bank and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Cable One.
Diversification Opportunities for PT Bank and Cable One
Excellent diversification
The 3 months correlation between BKRKF and Cable is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of PT Bank i.e., PT Bank and Cable One go up and down completely randomly.
Pair Corralation between PT Bank and Cable One
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 1.3 times more return on investment than Cable One. However, PT Bank is 1.3 times more volatile than Cable One. It trades about 0.04 of its potential returns per unit of risk. Cable One is currently generating about -0.03 per unit of risk. If you would invest 22.00 in PT Bank Rakyat on July 18, 2025 and sell it today you would earn a total of 0.00 from holding PT Bank Rakyat or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
PT Bank Rakyat vs. Cable One
Performance |
| Timeline |
| PT Bank Rakyat |
| Cable One |
PT Bank and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Cable One
The main advantage of trading using opposite PT Bank and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| PT Bank vs. Alpha Bank SA | PT Bank vs. Piraeus Bank SA | PT Bank vs. Piraeus Financial Holdings | PT Bank vs. United Bancorp |
| Cable One vs. Liberty Broadband Srs | Cable One vs. Cogent Communications Group | Cable One vs. Charter Communications | Cable One vs. Liberty Broadband Srs |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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