Correlation Between Bank Rakyat and Agilyx AS
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Agilyx AS 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 Agilyx AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Agilyx AS, you can compare the effects of market volatilities on Bank Rakyat and Agilyx AS 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 Agilyx AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Agilyx AS.
Diversification Opportunities for Bank Rakyat and Agilyx AS
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Agilyx is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS 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 Agilyx AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilyx AS has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Agilyx AS go up and down completely randomly.
Pair Corralation between Bank Rakyat and Agilyx AS
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Agilyx AS. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Rakyat is 1.14 times less risky than Agilyx AS. The pink sheet trades about -0.19 of its potential returns per unit of risk. The Agilyx AS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 284.00 in Agilyx AS on August 28, 2024 and sell it today you would earn a total of 22.00 from holding Agilyx AS or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Rakyat vs. Agilyx AS
Performance |
| Timeline |
| Bank Rakyat |
| Agilyx AS |
Bank Rakyat and Agilyx AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Agilyx AS
The main advantage of trading using opposite Bank Rakyat and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Agilyx AS 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 Agilyx AS will offset losses from the drop in Agilyx AS's long position.The idea behind Bank Rakyat and Agilyx AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Agilyx AS vs. Mongolia Growth Group | Agilyx AS vs. Pulse Seismic | Agilyx AS vs. IBC Advanced Alloys | Agilyx AS vs. Ag Growth International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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