Correlation Between Baraboo Bancorporation and Bank Rakyat
Can any of the company-specific risk be diversified away by investing in both Baraboo Bancorporation 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 Baraboo Bancorporation and Bank Rakyat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baraboo Bancorporation and Bank Rakyat, you can compare the effects of market volatilities on Baraboo Bancorporation 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 Baraboo Bancorporation with a short position of Bank Rakyat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baraboo Bancorporation and Bank Rakyat.
Diversification Opportunities for Baraboo Bancorporation and Bank Rakyat
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baraboo and Bank is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Baraboo Bancorp. and Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Rakyat and Baraboo Bancorporation 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 Baraboo Bancorporation 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 Baraboo Bancorporation i.e., Baraboo Bancorporation and Bank Rakyat go up and down completely randomly.
Pair Corralation between Baraboo Bancorporation and Bank Rakyat
Given the investment horizon of 90 days Baraboo Bancorporation is expected to generate 1.6 times more return on investment than Bank Rakyat. However, Baraboo Bancorporation is 1.6 times more volatile than Bank Rakyat. It trades about 0.03 of its potential returns per unit of risk. Bank Rakyat is currently generating about -0.01 per unit of risk. If you would invest 332.00 in Baraboo Bancorporation on November 27, 2024 and sell it today you would earn a total of 64.00 from holding Baraboo Bancorporation or generate 19.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 67.68% |
| Values | Daily Returns |
Baraboo Bancorp. vs. Bank Rakyat
Performance |
| Timeline |
| Baraboo Bancorporation |
| Bank Rakyat |
Baraboo Bancorporation and Bank Rakyat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baraboo Bancorporation and Bank Rakyat
The main advantage of trading using opposite Baraboo Bancorporation and Bank Rakyat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baraboo Bancorporation 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.| Baraboo Bancorporation vs. Andover Bancorp | Baraboo Bancorporation vs. Aozora Bank Ltd | Baraboo Bancorporation vs. Israel Discount Bank | Baraboo Bancorporation vs. Schweizerische Nationalbank |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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