Correlation Between Bank Rakyat and Snipp Interactive
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Snipp Interactive 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 Snipp Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Snipp Interactive, you can compare the effects of market volatilities on Bank Rakyat and Snipp Interactive 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 Snipp Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Snipp Interactive.
Diversification Opportunities for Bank Rakyat and Snipp Interactive
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Snipp is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Snipp Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snipp Interactive 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 Snipp Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snipp Interactive has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Snipp Interactive go up and down completely randomly.
Pair Corralation between Bank Rakyat and Snipp Interactive
Assuming the 90 days horizon Bank Rakyat is expected to generate 0.3 times more return on investment than Snipp Interactive. However, Bank Rakyat is 3.29 times less risky than Snipp Interactive. It trades about -0.01 of its potential returns per unit of risk. Snipp Interactive is currently generating about -0.01 per unit of risk. If you would invest 1,390 in Bank Rakyat on September 1, 2024 and sell it today you would lose (45.00) from holding Bank Rakyat or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Rakyat vs. Snipp Interactive
Performance |
| Timeline |
| Bank Rakyat |
| Snipp Interactive |
Bank Rakyat and Snipp Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Snipp Interactive
The main advantage of trading using opposite Bank Rakyat and Snipp Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Snipp Interactive 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 Snipp Interactive will offset losses from the drop in Snipp Interactive's long position.| Bank Rakyat vs. Piraeus Bank SA | Bank Rakyat vs. Turkiye Garanti Bankasi | Bank Rakyat vs. Delhi Bank Corp | Bank Rakyat vs. Uwharrie Capital Corp |
| Snipp Interactive vs. HUMANA INC | Snipp Interactive vs. Aquagold International | Snipp Interactive vs. Barloworld Ltd ADR | Snipp Interactive vs. Thrivent High Yield |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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