Correlation Between Postal Savings and PT Bank
Can any of the company-specific risk be diversified away by investing in both Postal Savings and PT Bank 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 Postal Savings and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and PT Bank Central, you can compare the effects of market volatilities on Postal Savings and PT Bank 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 Postal Savings with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and PT Bank.
Diversification Opportunities for Postal Savings and PT Bank
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Postal and PBCRF is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and PT Bank Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Central and Postal Savings 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 Postal Savings Bank are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Central has no effect on the direction of Postal Savings i.e., Postal Savings and PT Bank go up and down completely randomly.
Pair Corralation between Postal Savings and PT Bank
Assuming the 90 days horizon Postal Savings Bank is expected to generate 15.97 times more return on investment than PT Bank. However, Postal Savings is 15.97 times more volatile than PT Bank Central. It trades about 0.06 of its potential returns per unit of risk. PT Bank Central is currently generating about 0.01 per unit of risk. If you would invest 1,078 in Postal Savings Bank on September 7, 2025 and sell it today you would earn a total of 341.00 from holding Postal Savings Bank or generate 31.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Postal Savings Bank vs. PT Bank Central
Performance |
| Timeline |
| Postal Savings Bank |
| PT Bank Central |
Postal Savings and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and PT Bank
The main advantage of trading using opposite Postal Savings and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| Postal Savings vs. HDFC Bank Limited | Postal Savings vs. China Merchants Bank | Postal Savings vs. China Merchants Bank | Postal Savings vs. Fifth Third Bancorp |
| PT Bank vs. HDFC Bank Limited | PT Bank vs. China Merchants Bank | PT Bank vs. China Merchants Bank | PT Bank vs. Fifth Third Bancorp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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