Correlation Between Bank Rakyat and Oceantech Acquisitions
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Oceantech Acquisitions 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 Oceantech Acquisitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Oceantech Acquisitions I, you can compare the effects of market volatilities on Bank Rakyat and Oceantech Acquisitions 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 Oceantech Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Oceantech Acquisitions.
Diversification Opportunities for Bank Rakyat and Oceantech Acquisitions
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Oceantech is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Oceantech Acquisitions I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceantech Acquisitions 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 Oceantech Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceantech Acquisitions has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Oceantech Acquisitions go up and down completely randomly.
Pair Corralation between Bank Rakyat and Oceantech Acquisitions
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Oceantech Acquisitions. In addition to that, Bank Rakyat is 2.94 times more volatile than Oceantech Acquisitions I. It trades about 0.0 of its total potential returns per unit of risk. Oceantech Acquisitions I is currently generating about 0.04 per unit of volatility. If you would invest 1,031 in Oceantech Acquisitions I on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Oceantech Acquisitions I or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.71% |
| Values | Daily Returns |
Bank Rakyat vs. Oceantech Acquisitions I
Performance |
| Timeline |
| Bank Rakyat |
| Oceantech Acquisitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Oceantech Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Oceantech Acquisitions
The main advantage of trading using opposite Bank Rakyat and Oceantech Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Oceantech Acquisitions 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 Oceantech Acquisitions will offset losses from the drop in Oceantech Acquisitions' 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 |
| Oceantech Acquisitions vs. Keurig Dr Pepper | Oceantech Acquisitions vs. Olympic Steel | Oceantech Acquisitions vs. Asbury Automotive Group | Oceantech Acquisitions vs. Simon Property 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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