Correlation Between Bank Rakyat and CF Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and CF Acquisition 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 CF Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and CF Acquisition IV, you can compare the effects of market volatilities on Bank Rakyat and CF Acquisition 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 CF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and CF Acquisition.
Diversification Opportunities for Bank Rakyat and CF Acquisition
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and CFIV is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and CF Acquisition IV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Acquisition IV 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 CF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Acquisition IV has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and CF Acquisition go up and down completely randomly.
Pair Corralation between Bank Rakyat and CF Acquisition
If you would invest 1,052 in CF Acquisition IV on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CF Acquisition IV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Bank Rakyat vs. CF Acquisition IV
Performance |
| Timeline |
| Bank Rakyat |
| CF Acquisition IV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and CF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and CF Acquisition
The main advantage of trading using opposite Bank Rakyat and CF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, CF Acquisition 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 CF Acquisition will offset losses from the drop in CF Acquisition's long position.| Bank Rakyat vs. Israel Discount Bank | Bank Rakyat vs. Baraboo Bancorporation | Bank Rakyat vs. Danske Bank AS | Bank Rakyat vs. Jyske Bank AS |
| CF Acquisition vs. Finnovate Acquisition Corp | CF Acquisition vs. IX Acquisition Corp | CF Acquisition vs. LatAmGrowth SPAC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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