Correlation Between Bank Rakyat and Amg Cap
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Amg Cap 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 Bank Rakyat and Amg Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Amg Cap Tr, you can compare the effects of market volatilities on Bank Rakyat and Amg Cap 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 Bank Rakyat with a short position of Amg Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Amg Cap.
Diversification Opportunities for Bank Rakyat and Amg Cap
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Amg is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Amg Cap Tr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Cap Tr and Bank Rakyat 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 Bank Rakyat are associated (or correlated) with Amg Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Cap Tr has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Amg Cap go up and down completely randomly.
Pair Corralation between Bank Rakyat and Amg Cap
Assuming the 90 days horizon Bank Rakyat is expected to generate 18.3 times less return on investment than Amg Cap. But when comparing it to its historical volatility, Bank Rakyat is 3.0 times less risky than Amg Cap. It trades about 0.0 of its potential returns per unit of risk. Amg Cap Tr is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,250 in Amg Cap Tr on August 26, 2024 and sell it today you would earn a total of 225.00 from holding Amg Cap Tr or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.9% |
| Values | Daily Returns |
Bank Rakyat vs. Amg Cap Tr
Performance |
| Timeline |
| Bank Rakyat |
| Amg Cap Tr |
Bank Rakyat and Amg Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Amg Cap
The main advantage of trading using opposite Bank Rakyat and Amg Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Amg Cap 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 Amg Cap will offset losses from the drop in Amg Cap's long position.| Bank Rakyat vs. PSB Holdings | Bank Rakyat vs. United Overseas Bank | Bank Rakyat vs. Turkiye Garanti Bankasi |
| Amg Cap vs. Morgan Stanley | Amg Cap vs. Goldman Sachs Group | Amg Cap vs. Charles Schwab Corp | Amg Cap vs. Interactive Brokers 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 Stocks Directory module to find actively traded stocks across global markets.
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