Correlation Between Bank Rakyat and Atec
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Atec 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 Atec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Atec Inc, you can compare the effects of market volatilities on Bank Rakyat and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Atec.
Diversification Opportunities for Bank Rakyat and Atec
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Atec is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Atec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec Inc 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec Inc has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Atec go up and down completely randomly.
Pair Corralation between Bank Rakyat and Atec
If you would invest 2,155 in Atec Inc on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Atec Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank Rakyat vs. Atec Inc
Performance |
| Timeline |
| Bank Rakyat |
| Atec Inc |
Bank Rakyat and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Atec
The main advantage of trading using opposite Bank Rakyat and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Bank Rakyat vs. Piraeus Bank SA | Bank Rakyat vs. Turkiye Garanti Bankasi | Bank Rakyat vs. Delhi Bank Corp | Bank Rakyat vs. Uwharrie Capital Corp |
| Atec vs. GEN Restaurant Group, | Atec vs. Yum Brands | Atec vs. The Cheesecake Factory | Atec vs. Doubledown Interactive Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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