Correlation Between PT Bank and Sharps Technology
Can any of the company-specific risk be diversified away by investing in both PT Bank and Sharps Technology 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 Sharps Technology 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 Sharps Technology, you can compare the effects of market volatilities on PT Bank and Sharps Technology 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 Sharps Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Sharps Technology.
Diversification Opportunities for PT Bank and Sharps Technology
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and Sharps is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Sharps Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharps Technology 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 Sharps Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharps Technology has no effect on the direction of PT Bank i.e., PT Bank and Sharps Technology go up and down completely randomly.
Pair Corralation between PT Bank and Sharps Technology
Assuming the 90 days horizon PT Bank is expected to generate 33.76 times less return on investment than Sharps Technology. But when comparing it to its historical volatility, PT Bank Rakyat is 2.26 times less risky than Sharps Technology. It trades about 0.0 of its potential returns per unit of risk. Sharps Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 631.00 in Sharps Technology on July 20, 2025 and sell it today you would lose (159.00) from holding Sharps Technology or give up 25.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Sharps Technology
Performance |
| Timeline |
| PT Bank Rakyat |
| Sharps Technology |
PT Bank and Sharps Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Sharps Technology
The main advantage of trading using opposite PT Bank and Sharps Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Sharps Technology 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 Sharps Technology will offset losses from the drop in Sharps Technology's long position.The idea behind PT Bank Rakyat and Sharps Technology 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.| Sharps Technology vs. Repro Med Systems | Sharps Technology vs. Microbot Medical | Sharps Technology vs. Owlet Inc | Sharps Technology vs. InfuSystems Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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