Correlation Between Bank Rakyat and Aenza SAA
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Aenza SAA 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 Aenza SAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Aenza SAA, you can compare the effects of market volatilities on Bank Rakyat and Aenza SAA 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 Aenza SAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Aenza SAA.
Diversification Opportunities for Bank Rakyat and Aenza SAA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Aenza is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA 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 Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Aenza SAA go up and down completely randomly.
Pair Corralation between Bank Rakyat and Aenza SAA
If you would invest 181.00 in Aenza SAA on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Aenza SAA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
Bank Rakyat vs. Aenza SAA
Performance |
| Timeline |
| Bank Rakyat |
| Aenza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Aenza SAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Aenza SAA
The main advantage of trading using opposite Bank Rakyat and Aenza SAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Aenza SAA 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 Aenza SAA will offset losses from the drop in Aenza SAA's long position.| Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Eurobank Ergasias Services | Bank Rakyat vs. Nedbank Group | Bank Rakyat vs. Standard Bank Group |
| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA vs. ACS Actividades De |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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