Correlation Between Bank Rakyat and Ezenia
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Ezenia 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 Ezenia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Ezenia Inc, you can compare the effects of market volatilities on Bank Rakyat and Ezenia 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 Ezenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Ezenia.
Diversification Opportunities for Bank Rakyat and Ezenia
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Ezenia is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Ezenia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ezenia Inc 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 Ezenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ezenia Inc has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Ezenia go up and down completely randomly.
Pair Corralation between Bank Rakyat and Ezenia
If you would invest 2.80 in Ezenia Inc on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Ezenia Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Rakyat vs. Ezenia Inc
Performance |
| Timeline |
| Bank Rakyat |
| Ezenia Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Ezenia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Ezenia
The main advantage of trading using opposite Bank Rakyat and Ezenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Ezenia 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 Ezenia will offset losses from the drop in Ezenia's long position.| Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Piraeus Bank SA | Bank Rakyat vs. Kasikornbank Public Co | Bank Rakyat vs. Turkiye Garanti Bankasi |
| Ezenia vs. Knowles Cor | Ezenia vs. Comtech Telecommunications Corp | Ezenia vs. Sonim Technologies | Ezenia vs. Mobilicom Limited American |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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