Correlation Between Bank Rakyat and Heliostar Metals
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Heliostar Metals 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 Heliostar Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Heliostar Metals, you can compare the effects of market volatilities on Bank Rakyat and Heliostar Metals 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 Heliostar Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Heliostar Metals.
Diversification Opportunities for Bank Rakyat and Heliostar Metals
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Heliostar is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Heliostar Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliostar Metals 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 Heliostar Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliostar Metals has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Heliostar Metals go up and down completely randomly.
Pair Corralation between Bank Rakyat and Heliostar Metals
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Heliostar Metals. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Rakyat is 3.79 times less risky than Heliostar Metals. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Heliostar Metals is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Heliostar Metals on August 30, 2024 and sell it today you would lose (2.00) from holding Heliostar Metals or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank Rakyat vs. Heliostar Metals
Performance |
| Timeline |
| Bank Rakyat |
| Heliostar Metals |
Bank Rakyat and Heliostar Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Heliostar Metals
The main advantage of trading using opposite Bank Rakyat and Heliostar Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Heliostar Metals 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 Heliostar Metals will offset losses from the drop in Heliostar Metals' long position.| Bank Rakyat vs. Israel Discount Bank | Bank Rakyat vs. Baraboo Bancorporation | Bank Rakyat vs. Danske Bank AS | Bank Rakyat vs. Absa Group Limited |
| Heliostar Metals vs. Westward Gold | Heliostar Metals vs. Revival Gold | Heliostar Metals vs. Cabral Gold | Heliostar Metals vs. Cassiar Gold 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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