Correlation Between Bank Rakyat and EF Hutton
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and EF Hutton 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 EF Hutton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and EF Hutton Acquisition, you can compare the effects of market volatilities on Bank Rakyat and EF Hutton 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 EF Hutton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and EF Hutton.
Diversification Opportunities for Bank Rakyat and EF Hutton
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and EFHTW is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and EF Hutton Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EF Hutton Acquisition 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 EF Hutton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EF Hutton Acquisition has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and EF Hutton go up and down completely randomly.
Pair Corralation between Bank Rakyat and EF Hutton
If you would invest 2.01 in EF Hutton Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding EF Hutton Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Rakyat vs. EF Hutton Acquisition
Performance |
| Timeline |
| Bank Rakyat |
| EF Hutton Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and EF Hutton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and EF Hutton
The main advantage of trading using opposite Bank Rakyat and EF Hutton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, EF Hutton 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 EF Hutton will offset losses from the drop in EF Hutton'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 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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