Correlation Between Bank Rakyat and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Coronado Global 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 Coronado Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Coronado Global Resources, you can compare the effects of market volatilities on Bank Rakyat and Coronado Global 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 Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Coronado Global.
Diversification Opportunities for Bank Rakyat and Coronado Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Coronado is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources 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 Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Coronado Global go up and down completely randomly.
Pair Corralation between Bank Rakyat and Coronado Global
Assuming the 90 days horizon Bank Rakyat is expected to generate 1.15 times more return on investment than Coronado Global. However, Bank Rakyat is 1.15 times more volatile than Coronado Global Resources. It trades about 0.03 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.16 per unit of risk. If you would invest 1,281 in Bank Rakyat on November 4, 2024 and sell it today you would earn a total of 14.00 from holding Bank Rakyat or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bank Rakyat vs. Coronado Global Resources
Performance |
| Timeline |
| Bank Rakyat |
| Coronado Global Resources |
Bank Rakyat and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Coronado Global
The main advantage of trading using opposite Bank Rakyat and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's 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 |
| Coronado Global vs. Colonial Coal International | Coronado Global vs. Alpha Metallurgical Resources | Coronado Global vs. Warrior Met Coal | Coronado Global vs. Ramaco Resources |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |