Correlation Between Bank Rakyat and Character
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Character 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 Character into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and The Character Group, you can compare the effects of market volatilities on Bank Rakyat and Character 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 Character. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Character.
Diversification Opportunities for Bank Rakyat and Character
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Character is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and The Character Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Character Group 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 Character. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Character Group has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Character go up and down completely randomly.
Pair Corralation between Bank Rakyat and Character
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Character. In addition to that, Bank Rakyat is 22.52 times more volatile than The Character Group. It trades about -0.28 of its total potential returns per unit of risk. The Character Group is currently generating about 0.22 per unit of volatility. If you would invest 325.00 in The Character Group on September 2, 2024 and sell it today you would earn a total of 1.00 from holding The Character Group or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Rakyat vs. The Character Group
Performance |
| Timeline |
| Bank Rakyat |
| Character Group |
Bank Rakyat and Character Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Character
The main advantage of trading using opposite Bank Rakyat and Character positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Character 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 Character will offset losses from the drop in Character's long position.| Bank Rakyat vs. Piraeus Bank SA | Bank Rakyat vs. Turkiye Garanti Bankasi | Bank Rakyat vs. Uwharrie Capital Corp |
| Character vs. American Outdoor Brands | Character vs. Clarus Corp | Character vs. Escalade Incorporated | Character vs. Johnson Outdoors |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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