Correlation Between PT Bank and Universal Media
Can any of the company-specific risk be diversified away by investing in both PT Bank and Universal Media 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 Universal Media 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 Universal Media Group, you can compare the effects of market volatilities on PT Bank and Universal Media 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 Universal Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Universal Media.
Diversification Opportunities for PT Bank and Universal Media
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKRKF and Universal is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Universal Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Media Group 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 Universal Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Media Group has no effect on the direction of PT Bank i.e., PT Bank and Universal Media go up and down completely randomly.
Pair Corralation between PT Bank and Universal Media
Assuming the 90 days horizon PT Bank is expected to generate 41.32 times less return on investment than Universal Media. But when comparing it to its historical volatility, PT Bank Rakyat is 8.66 times less risky than Universal Media. It trades about 0.05 of its potential returns per unit of risk. Universal Media Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2.20 in Universal Media Group on August 18, 2025 and sell it today you would earn a total of 9.80 from holding Universal Media Group or generate 445.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Universal Media Group
Performance |
| Timeline |
| PT Bank Rakyat |
| Universal Media Group |
PT Bank and Universal Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Universal Media
The main advantage of trading using opposite PT Bank and Universal Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Universal Media 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 Universal Media will offset losses from the drop in Universal Media's long position.| PT Bank vs. Skandinaviska Enskilda Banken | PT Bank vs. JAPAN POST BANK | PT Bank vs. Swedbank AB | PT Bank vs. Danske Bank AS |
| Universal Media vs. Broadside Enterprises | Universal Media vs. BB Liquidating | Universal Media vs. Big Screen Entertainment | Universal Media vs. Bebop Channel Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |