Correlation Between Bank Rakyat and Oxus Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Oxus Acquisition 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 Oxus Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Oxus Acquisition Corp, you can compare the effects of market volatilities on Bank Rakyat and Oxus Acquisition 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 Oxus Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Oxus Acquisition.
Diversification Opportunities for Bank Rakyat and Oxus Acquisition
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Oxus is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Oxus Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxus Acquisition 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 Oxus Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxus Acquisition Corp has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Oxus Acquisition go up and down completely randomly.
Pair Corralation between Bank Rakyat and Oxus Acquisition
If you would invest 1,238 in Bank Rakyat on October 20, 2024 and sell it today you would earn a total of 27.00 from holding Bank Rakyat or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bank Rakyat vs. Oxus Acquisition Corp
Performance |
| Timeline |
| Bank Rakyat |
| Oxus Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Oxus Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Oxus Acquisition
The main advantage of trading using opposite Bank Rakyat and Oxus Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Oxus Acquisition 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 Oxus Acquisition will offset losses from the drop in Oxus Acquisition's long position.| Bank Rakyat vs. The Farmers Bank | Bank Rakyat vs. CCSB Financial Corp | Bank Rakyat vs. Bank of Utica | Bank Rakyat vs. Delhi Bank 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |