Correlation Between Bank Rakyat and Avax Techs
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Avax Techs 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 Avax Techs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Avax Techs, you can compare the effects of market volatilities on Bank Rakyat and Avax Techs 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 Avax Techs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Avax Techs.
Diversification Opportunities for Bank Rakyat and Avax Techs
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Avax is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Avax Techs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avax Techs 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 Avax Techs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avax Techs has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Avax Techs go up and down completely randomly.
Pair Corralation between Bank Rakyat and Avax Techs
If you would invest 0.00 in Avax Techs on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Avax Techs or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Rakyat vs. Avax Techs
Performance |
| Timeline |
| Bank Rakyat |
| Avax Techs |
Bank Rakyat and Avax Techs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Avax Techs
The main advantage of trading using opposite Bank Rakyat and Avax Techs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Avax Techs 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 Avax Techs will offset losses from the drop in Avax Techs' 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 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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