Correlation Between PT Bank and Canna Consumer
Can any of the company-specific risk be diversified away by investing in both PT Bank and Canna Consumer 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 Canna Consumer 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 Canna Consumer Goods, you can compare the effects of market volatilities on PT Bank and Canna Consumer 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 Canna Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Canna Consumer.
Diversification Opportunities for PT Bank and Canna Consumer
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and Canna is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Canna Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canna Consumer Goods 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 Canna Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canna Consumer Goods has no effect on the direction of PT Bank i.e., PT Bank and Canna Consumer go up and down completely randomly.
Pair Corralation between PT Bank and Canna Consumer
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 0.16 times more return on investment than Canna Consumer. However, PT Bank Rakyat is 6.29 times less risky than Canna Consumer. It trades about 0.1 of its potential returns per unit of risk. Canna Consumer Goods is currently generating about -0.13 per unit of risk. If you would invest 21.00 in PT Bank Rakyat on August 14, 2025 and sell it today you would earn a total of 2.00 from holding PT Bank Rakyat or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Canna Consumer Goods
Performance |
| Timeline |
| PT Bank Rakyat |
| Canna Consumer Goods |
PT Bank and Canna Consumer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Canna Consumer
The main advantage of trading using opposite PT Bank and Canna Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Canna Consumer 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 Canna Consumer will offset losses from the drop in Canna Consumer's long position.| PT Bank vs. Erste Group Bank | PT Bank vs. Postal Savings Bank | PT Bank vs. Lloyds Banking Group | PT Bank vs. ING Groep NV |
| Canna Consumer vs. Jubilant Flame International | Canna Consumer vs. Clarocity Corp | Canna Consumer vs. Meridian Holdings | Canna Consumer vs. Wildpack Beverage |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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