Correlation Between MOBILE FACTORY and BANK RAKYAT
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY and BANK RAKYAT 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 MOBILE FACTORY and BANK RAKYAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and BANK RAKYAT IND, you can compare the effects of market volatilities on MOBILE FACTORY and BANK RAKYAT 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 MOBILE FACTORY with a short position of BANK RAKYAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and BANK RAKYAT.
Diversification Opportunities for MOBILE FACTORY and BANK RAKYAT
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOBILE and BANK is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and BANK RAKYAT IND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK RAKYAT IND and MOBILE FACTORY 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 MOBILE FACTORY INC are associated (or correlated) with BANK RAKYAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK RAKYAT IND has no effect on the direction of MOBILE FACTORY i.e., MOBILE FACTORY and BANK RAKYAT go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and BANK RAKYAT
Assuming the 90 days horizon MOBILE FACTORY INC is expected to generate 1.07 times more return on investment than BANK RAKYAT. However, MOBILE FACTORY is 1.07 times more volatile than BANK RAKYAT IND. It trades about 0.0 of its potential returns per unit of risk. BANK RAKYAT IND is currently generating about -0.01 per unit of risk. If you would invest 620.00 in MOBILE FACTORY INC on October 12, 2024 and sell it today you would lose (50.00) from holding MOBILE FACTORY INC or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. BANK RAKYAT IND
Performance |
| Timeline |
| MOBILE FACTORY INC |
| BANK RAKYAT IND |
MOBILE FACTORY and BANK RAKYAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and BANK RAKYAT
The main advantage of trading using opposite MOBILE FACTORY and BANK RAKYAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY position performs unexpectedly, BANK RAKYAT 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 BANK RAKYAT will offset losses from the drop in BANK RAKYAT's long position.| MOBILE FACTORY vs. PKSHA TECHNOLOGY INC | MOBILE FACTORY vs. Kingdee International Software | MOBILE FACTORY vs. STRAYER EDUCATION | MOBILE FACTORY vs. SCOTT TECHNOLOGY |
| BANK RAKYAT vs. MOBILE FACTORY INC | BANK RAKYAT vs. T MOBILE US | BANK RAKYAT vs. Spirent Communications plc | BANK RAKYAT vs. Harmony Gold Mining |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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