Correlation Between Bank Rakyat and Onex Corp
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Onex Corp 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 Onex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Onex Corp, you can compare the effects of market volatilities on Bank Rakyat and Onex Corp 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 Onex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Onex Corp.
Diversification Opportunities for Bank Rakyat and Onex Corp
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Onex is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Onex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onex Corp 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 Onex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onex Corp has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Onex Corp go up and down completely randomly.
Pair Corralation between Bank Rakyat and Onex Corp
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Onex Corp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Rakyat is 1.65 times less risky than Onex Corp. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Onex Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,107 in Onex Corp on August 29, 2024 and sell it today you would earn a total of 1,000.00 from holding Onex Corp or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Rakyat vs. Onex Corp
Performance |
| Timeline |
| Bank Rakyat |
| Onex Corp |
Bank Rakyat and Onex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Onex Corp
The main advantage of trading using opposite Bank Rakyat and Onex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Onex Corp 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 Onex Corp will offset losses from the drop in Onex Corp'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 |
| Onex Corp vs. Cohen Steers | Onex Corp vs. Artisan Partners Asset | Onex Corp vs. Principal Financial Group | Onex Corp vs. Invesco Plc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |