Correlation Between PT Bank and S A P
Can any of the company-specific risk be diversified away by investing in both PT Bank and S A P 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 S A P 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 SAP SE ADR, you can compare the effects of market volatilities on PT Bank and S A P 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 S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and S A P.
Diversification Opportunities for PT Bank and S A P
Very weak diversification
The 3 months correlation between BKRKF and SAP is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and SAP SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE ADR 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 S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE ADR has no effect on the direction of PT Bank i.e., PT Bank and S A P go up and down completely randomly.
Pair Corralation between PT Bank and S A P
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 3.26 times more return on investment than S A P. However, PT Bank is 3.26 times more volatile than SAP SE ADR. It trades about 0.0 of its potential returns per unit of risk. SAP SE ADR is currently generating about -0.11 per unit of risk. If you would invest 24.00 in PT Bank Rakyat on July 18, 2025 and sell it today you would lose (2.00) from holding PT Bank Rakyat or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
PT Bank Rakyat vs. SAP SE ADR
Performance |
| Timeline |
| PT Bank Rakyat |
| SAP SE ADR |
PT Bank and S A P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and S A P
The main advantage of trading using opposite PT Bank and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P'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 |
| S A P vs. Tyler Technologies | S A P vs. Roper Technologies, | S A P vs. Cadence Design Systems | S A P vs. PTC Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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