Correlation Between Bank Rakyat and Cordoba Minerals
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Cordoba Minerals 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 Cordoba Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Cordoba Minerals Corp, you can compare the effects of market volatilities on Bank Rakyat and Cordoba Minerals 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 Cordoba Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Cordoba Minerals.
Diversification Opportunities for Bank Rakyat and Cordoba Minerals
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Cordoba is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Cordoba Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cordoba Minerals Corp 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 Cordoba Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cordoba Minerals Corp has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Cordoba Minerals go up and down completely randomly.
Pair Corralation between Bank Rakyat and Cordoba Minerals
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Cordoba Minerals. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Rakyat is 4.97 times less risky than Cordoba Minerals. The pink sheet trades about -0.37 of its potential returns per unit of risk. The Cordoba Minerals Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Cordoba Minerals Corp on September 4, 2024 and sell it today you would lose (3.00) from holding Cordoba Minerals Corp or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank Rakyat vs. Cordoba Minerals Corp
Performance |
| Timeline |
| Bank Rakyat |
| Cordoba Minerals Corp |
Bank Rakyat and Cordoba Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Cordoba Minerals
The main advantage of trading using opposite Bank Rakyat and Cordoba Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Cordoba Minerals 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 Cordoba Minerals will offset losses from the drop in Cordoba Minerals' 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 |
| Cordoba Minerals vs. Advantage Solutions | Cordoba Minerals vs. Atlas Corp | Cordoba Minerals vs. PureCycle Technologies | Cordoba Minerals vs. WM Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |