Correlation Between Applied Digital and Bank Rakyat
Can any of the company-specific risk be diversified away by investing in both Applied Digital 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 Applied Digital and Bank Rakyat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Digital and Bank Rakyat, you can compare the effects of market volatilities on Applied Digital 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 Applied Digital with a short position of Bank Rakyat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Digital and Bank Rakyat.
Diversification Opportunities for Applied Digital and Bank Rakyat
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Applied and Bank is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Applied Digital and Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Rakyat and Applied Digital 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 Applied Digital 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 has no effect on the direction of Applied Digital i.e., Applied Digital and Bank Rakyat go up and down completely randomly.
Pair Corralation between Applied Digital and Bank Rakyat
Given the investment horizon of 90 days Applied Digital is expected to generate 4.89 times more return on investment than Bank Rakyat. However, Applied Digital is 4.89 times more volatile than Bank Rakyat. It trades about 0.07 of its potential returns per unit of risk. Bank Rakyat is currently generating about -0.01 per unit of risk. If you would invest 265.00 in Applied Digital on November 19, 2024 and sell it today you would earn a total of 646.00 from holding Applied Digital or generate 243.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Applied Digital vs. Bank Rakyat
Performance |
| Timeline |
| Applied Digital |
| Bank Rakyat |
Applied Digital and Bank Rakyat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Digital and Bank Rakyat
The main advantage of trading using opposite Applied Digital and Bank Rakyat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Digital 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.| Applied Digital vs. Magic Empire Global | Applied Digital vs. Zhong Yang Financial | Applied Digital vs. Netcapital | Applied Digital vs. Lazard |
| Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Eurobank Ergasias Services | Bank Rakyat vs. Nedbank Group | Bank Rakyat vs. Standard Bank Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |