Correlation Between Bank Rakyat and Alpha Services

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Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Alpha Services 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 Alpha Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Alpha Services And, you can compare the effects of market volatilities on Bank Rakyat and Alpha Services 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 Alpha Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Alpha Services.

Diversification Opportunities for Bank Rakyat and Alpha Services

BankAlphaDiversified AwayBankAlphaDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Bank and Alpha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Alpha Services And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Services And 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 Alpha Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Services And has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Alpha Services go up and down completely randomly.

Pair Corralation between Bank Rakyat and Alpha Services

If you would invest (100.00) in Alpha Services And on November 21, 2024 and sell it today you would earn a total of  100.00  from holding Alpha Services And or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Bank Rakyat  vs.  Alpha Services And

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-50
JavaScript chart by amCharts 3.21.15BKRKY ALBKF
       Timeline  
Bank Rakyat 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Bank Rakyat has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking signals, Bank Rakyat is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11.51212.51313.514
Alpha Services And 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Alpha Services And has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Alpha Services is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Bank Rakyat and Alpha Services Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.55-2.68-1.8-0.93-0.05920.771.592.413.234.05 0.020.040.060.08
JavaScript chart by amCharts 3.21.15BKRKY ALBKF
       Returns  

Pair Trading with Bank Rakyat and Alpha Services

The main advantage of trading using opposite Bank Rakyat and Alpha Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Alpha Services 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 Alpha Services will offset losses from the drop in Alpha Services' long position.
The idea behind Bank Rakyat and Alpha Services And 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.
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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