Correlation Between Bank Rakyat and Grom Social
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Grom Social 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 Grom Social into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Grom Social Enterprises, you can compare the effects of market volatilities on Bank Rakyat and Grom Social 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 Grom Social. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Grom Social.
Diversification Opportunities for Bank Rakyat and Grom Social
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Grom is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Grom Social Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grom Social Enterprises 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 Grom Social. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grom Social Enterprises has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Grom Social go up and down completely randomly.
Pair Corralation between Bank Rakyat and Grom Social
If you would invest 1.00 in Grom Social Enterprises on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Grom Social Enterprises or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.69% |
| Values | Daily Returns |
Bank Rakyat vs. Grom Social Enterprises
Performance |
| Timeline |
| Bank Rakyat |
| Grom Social Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Grom Social Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Grom Social
The main advantage of trading using opposite Bank Rakyat and Grom Social positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Grom Social 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 Grom Social will offset losses from the drop in Grom Social'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 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |