Correlation Between Bank Rakyat and Emera Maine
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Emera Maine 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 Emera Maine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Emera Maine PFD, you can compare the effects of market volatilities on Bank Rakyat and Emera Maine 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 Emera Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Emera Maine.
Diversification Opportunities for Bank Rakyat and Emera Maine
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Emera is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Emera Maine PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Maine PFD 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 Emera Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Maine PFD has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Emera Maine go up and down completely randomly.
Pair Corralation between Bank Rakyat and Emera Maine
If you would invest 9,825 in Emera Maine PFD on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Emera Maine PFD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Rakyat vs. Emera Maine PFD
Performance |
| Timeline |
| Bank Rakyat |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Emera Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Emera Maine
The main advantage of trading using opposite Bank Rakyat and Emera Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Emera Maine 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 Emera Maine will offset losses from the drop in Emera Maine'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 |
| Emera Maine vs. Sapiens International | Emera Maine vs. Rumble Inc | Emera Maine vs. Uber Technologies | Emera Maine vs. Asure Software |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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