Correlation Between Bank Rakyat and Virtual Medical
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Virtual Medical 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 Virtual Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Virtual Medical International, you can compare the effects of market volatilities on Bank Rakyat and Virtual Medical 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 Virtual Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Virtual Medical.
Diversification Opportunities for Bank Rakyat and Virtual Medical
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Virtual is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Virtual Medical International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtual Medical Inte 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 Virtual Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtual Medical Inte has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Virtual Medical go up and down completely randomly.
Pair Corralation between Bank Rakyat and Virtual Medical
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Virtual Medical. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Rakyat is 6.59 times less risky than Virtual Medical. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Virtual Medical International is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 0.10 in Virtual Medical International on September 12, 2024 and sell it today you would lose (0.08) from holding Virtual Medical International or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Rakyat vs. Virtual Medical International
Performance |
| Timeline |
| Bank Rakyat |
| Virtual Medical Inte |
Bank Rakyat and Virtual Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Virtual Medical
The main advantage of trading using opposite Bank Rakyat and Virtual Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Virtual Medical 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 Virtual Medical will offset losses from the drop in Virtual Medical's long position.| Bank Rakyat vs. PT Bank Rakyat | Bank Rakyat vs. Morningstar Unconstrained Allocation | Bank Rakyat vs. Bondbloxx ETF Trust | Bank Rakyat vs. Spring Valley Acquisition |
| Virtual Medical vs. Galexxy Holdings | Virtual Medical vs. GelStat Corp | Virtual Medical vs. Link Reservations | Virtual Medical vs. Anything Tech Media |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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