Correlation Between Bank Rakyat and G Medical
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and G Medical 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 G Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and G Medical Innovations, you can compare the effects of market volatilities on Bank Rakyat and G Medical 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 G Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and G Medical.
Diversification Opportunities for Bank Rakyat and G Medical
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and GMVDW is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations 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 G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and G Medical go up and down completely randomly.
Pair Corralation between Bank Rakyat and G Medical
If you would invest 401.00 in G Medical Innovations on September 1, 2024 and sell it today you would earn a total of 0.00 from holding G Medical Innovations or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Rakyat vs. G Medical Innovations
Performance |
| Timeline |
| Bank Rakyat |
| G Medical Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and G Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and G Medical
The main advantage of trading using opposite Bank Rakyat and G Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, G Medical 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 G Medical will offset losses from the drop in G Medical'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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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