Correlation Between Bank Rakyat and Concrete Leveling
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Concrete Leveling 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 Concrete Leveling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Concrete Leveling Systems, you can compare the effects of market volatilities on Bank Rakyat and Concrete Leveling 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 Concrete Leveling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Concrete Leveling.
Diversification Opportunities for Bank Rakyat and Concrete Leveling
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Concrete is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Concrete Leveling Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Leveling Systems 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 Concrete Leveling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Leveling Systems has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Concrete Leveling go up and down completely randomly.
Pair Corralation between Bank Rakyat and Concrete Leveling
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Concrete Leveling. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Rakyat is 14.84 times less risky than Concrete Leveling. The pink sheet trades about -0.36 of its potential returns per unit of risk. The Concrete Leveling Systems is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Concrete Leveling Systems on September 1, 2024 and sell it today you would earn a total of 43.00 from holding Concrete Leveling Systems or generate 204.76% 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. Concrete Leveling Systems
Performance |
| Timeline |
| Bank Rakyat |
| Concrete Leveling Systems |
Bank Rakyat and Concrete Leveling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Concrete Leveling
The main advantage of trading using opposite Bank Rakyat and Concrete Leveling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Concrete Leveling 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 Concrete Leveling will offset losses from the drop in Concrete Leveling'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 |
| Concrete Leveling vs. American Premium Water | Concrete Leveling vs. Arts Way Manufacturing Co | Concrete Leveling vs. Astec Industries | Concrete Leveling vs. Alamo 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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