Correlation Between Bank Rakyat and Raffles Medical
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Raffles 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 Raffles 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 Raffles Medical Group, you can compare the effects of market volatilities on Bank Rakyat and Raffles 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 Raffles Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Raffles Medical.
Diversification Opportunities for Bank Rakyat and Raffles Medical
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Raffles is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Raffles Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raffles Medical Group 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 Raffles Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raffles Medical Group has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Raffles Medical go up and down completely randomly.
Pair Corralation between Bank Rakyat and Raffles Medical
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Raffles Medical. In addition to that, Bank Rakyat is 1.68 times more volatile than Raffles Medical Group. It trades about -0.04 of its total potential returns per unit of risk. Raffles Medical Group is currently generating about -0.07 per unit of volatility. If you would invest 77.00 in Raffles Medical Group on September 12, 2024 and sell it today you would lose (3.00) from holding Raffles Medical Group or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 21.46% |
| Values | Daily Returns |
Bank Rakyat vs. Raffles Medical Group
Performance |
| Timeline |
| Bank Rakyat |
| Raffles Medical Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Raffles Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Raffles Medical
The main advantage of trading using opposite Bank Rakyat and Raffles Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Raffles 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 Raffles Medical will offset losses from the drop in Raffles 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 |
| Raffles Medical vs. Pennant Group | Raffles Medical vs. Surgery Partners | Raffles Medical vs. The Ensign Group | Raffles Medical vs. Encompass Health 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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