Correlation Between Bank Rakyat and MyMD Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and MyMD Pharmaceuticals 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 MyMD Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and MyMD Pharmaceuticals, you can compare the effects of market volatilities on Bank Rakyat and MyMD Pharmaceuticals 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 MyMD Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and MyMD Pharmaceuticals.
Diversification Opportunities for Bank Rakyat and MyMD Pharmaceuticals
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and MyMD is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and MyMD Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyMD Pharmaceuticals 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 MyMD Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyMD Pharmaceuticals has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and MyMD Pharmaceuticals go up and down completely randomly.
Pair Corralation between Bank Rakyat and MyMD Pharmaceuticals
Assuming the 90 days horizon Bank Rakyat is expected to generate 0.23 times more return on investment than MyMD Pharmaceuticals. However, Bank Rakyat is 4.39 times less risky than MyMD Pharmaceuticals. It trades about 0.0 of its potential returns per unit of risk. MyMD Pharmaceuticals is currently generating about -0.1 per unit of risk. If you would invest 1,414 in Bank Rakyat on September 26, 2024 and sell it today you would lose (128.00) from holding Bank Rakyat or give up 9.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 79.37% |
| Values | Daily Returns |
Bank Rakyat vs. MyMD Pharmaceuticals
Performance |
| Timeline |
| Bank Rakyat |
| MyMD Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and MyMD Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and MyMD Pharmaceuticals
The main advantage of trading using opposite Bank Rakyat and MyMD Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, MyMD Pharmaceuticals 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 MyMD Pharmaceuticals will offset losses from the drop in MyMD Pharmaceuticals' long position.| Bank Rakyat vs. Banco Bradesco SA | Bank Rakyat vs. Itau Unibanco Banco | Bank Rakyat vs. Deutsche Bank AG | Bank Rakyat vs. Banco Santander Brasil |
| MyMD Pharmaceuticals vs. Recursion Pharmaceuticals | MyMD Pharmaceuticals vs. Atea Pharmaceuticals | MyMD Pharmaceuticals vs. Unity Biotechnology | MyMD Pharmaceuticals vs. Replimune 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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