Correlation Between Bank Rakyat and Muncy Bank
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Muncy Bank 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 Muncy Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Muncy Bank Financial, you can compare the effects of market volatilities on Bank Rakyat and Muncy Bank 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 Muncy Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Muncy Bank.
Diversification Opportunities for Bank Rakyat and Muncy Bank
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Muncy is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Muncy Bank Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muncy Bank Financial 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 Muncy Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muncy Bank Financial has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Muncy Bank go up and down completely randomly.
Pair Corralation between Bank Rakyat and Muncy Bank
Assuming the 90 days horizon Bank Rakyat is expected to generate 0.74 times more return on investment than Muncy Bank. However, Bank Rakyat is 1.36 times less risky than Muncy Bank. It trades about 0.01 of its potential returns per unit of risk. Muncy Bank Financial is currently generating about -0.02 per unit of risk. If you would invest 1,379 in Bank Rakyat on August 29, 2024 and sell it today you would lose (12.00) from holding Bank Rakyat or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.45% |
| Values | Daily Returns |
Bank Rakyat vs. Muncy Bank Financial
Performance |
| Timeline |
| Bank Rakyat |
| Muncy Bank Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Muncy Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Muncy Bank
The main advantage of trading using opposite Bank Rakyat and Muncy Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Muncy Bank 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 Muncy Bank will offset losses from the drop in Muncy Bank's long position.| Bank Rakyat vs. Israel Discount Bank | Bank Rakyat vs. Baraboo Bancorporation | Bank Rakyat vs. Danske Bank AS | Bank Rakyat vs. Jyske Bank AS |
| Muncy Bank vs. Main Street Financial | Muncy Bank vs. Susquehanna Community Financial | Muncy Bank vs. First Keystone Corp | Muncy Bank vs. Mifflinburg Bancorp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |