Correlation Between Bank Rakyat and Ackermans Van
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Ackermans Van 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 Ackermans Van into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Ackermans Van Haaren, you can compare the effects of market volatilities on Bank Rakyat and Ackermans Van 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 Ackermans Van. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Ackermans Van.
Diversification Opportunities for Bank Rakyat and Ackermans Van
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Ackermans is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Ackermans Van Haaren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackermans Van Haaren 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 Ackermans Van. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackermans Van Haaren has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Ackermans Van go up and down completely randomly.
Pair Corralation between Bank Rakyat and Ackermans Van
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Ackermans Van. In addition to that, Bank Rakyat is 1.49 times more volatile than Ackermans Van Haaren. It trades about -0.09 of its total potential returns per unit of risk. Ackermans Van Haaren is currently generating about 0.1 per unit of volatility. If you would invest 16,518 in Ackermans Van Haaren on September 1, 2024 and sell it today you would earn a total of 2,926 from holding Ackermans Van Haaren or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Bank Rakyat vs. Ackermans Van Haaren
Performance |
| Timeline |
| Bank Rakyat |
| Ackermans Van Haaren |
Bank Rakyat and Ackermans Van Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Ackermans Van
The main advantage of trading using opposite Bank Rakyat and Ackermans Van positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Ackermans Van 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 Ackermans Van will offset losses from the drop in Ackermans Van'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 |
| Ackermans Van vs. Canlan Ice Sports | Ackermans Van vs. Delek Logistics Partners | Ackermans Van vs. Norfolk Southern | Ackermans Van vs. Vindicator Silver Lead Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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