Correlation Between Bank Rakyat and Goliath Film
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Goliath Film 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 Goliath Film into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Goliath Film and, you can compare the effects of market volatilities on Bank Rakyat and Goliath Film 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 Goliath Film. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Goliath Film.
Diversification Opportunities for Bank Rakyat and Goliath Film
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Goliath is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Goliath Film and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goliath Film 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 Goliath Film. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goliath Film has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Goliath Film go up and down completely randomly.
Pair Corralation between Bank Rakyat and Goliath Film
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Goliath Film. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Rakyat is 3.78 times less risky than Goliath Film. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Goliath Film and is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 0.38 in Goliath Film and on September 1, 2024 and sell it today you would lose (0.08) from holding Goliath Film and or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bank Rakyat vs. Goliath Film and
Performance |
| Timeline |
| Bank Rakyat |
| Goliath Film |
Bank Rakyat and Goliath Film Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Goliath Film
The main advantage of trading using opposite Bank Rakyat and Goliath Film positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Goliath Film 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 Goliath Film will offset losses from the drop in Goliath Film'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 |
| Goliath Film vs. HUMANA INC | Goliath Film vs. Aquagold International | Goliath Film vs. Barloworld Ltd ADR | Goliath Film vs. Thrivent High Yield |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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