Correlation Between PT Bank and DOCDATA

Can any of the company-specific risk be diversified away by investing in both PT Bank and DOCDATA 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 DOCDATA 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 DOCDATA, you can compare the effects of market volatilities on PT Bank and DOCDATA 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 DOCDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and DOCDATA.

Diversification Opportunities for PT Bank and DOCDATA

0.57

Correlation Coefficient

PT Bank  DOCDATA

Very weak diversification

The 3 months correlation between BYRA and DOCDATA is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and DOCDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOCDATA 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 DOCDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOCDATA has no effect on the direction of PT Bank i.e., PT Bank and DOCDATA go up and down completely randomly.

Pair Corralation between PT Bank and DOCDATA

Assuming the 90 days trading horizon PT Bank is expected to generate 1.46 times less return on investment than DOCDATA. In addition to that, PT Bank is 2.26 times more volatile than DOCDATA. It trades about 0.02 of its total potential returns per unit of risk. DOCDATA is currently generating about 0.05 per unit of volatility. If you would invest  35.00  in DOCDATA on April 23, 2025 and sell it today you would earn a total of  3.00  from holding DOCDATA or generate 8.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

PT Bank Rakyat  vs.  DOCDATA

PT Bank Rakyat

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PT Bank Rakyat are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, PT Bank may actually be approaching a critical reversion point that can send shares even higher in August 2025.

DOCDATA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DOCDATA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, DOCDATA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with PT Bank and DOCDATA

The main advantage of trading using opposite PT Bank and DOCDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, DOCDATA 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 DOCDATA will offset losses from the drop in DOCDATA's long position.

The idea behind PT Bank Rakyat and DOCDATA 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.