Correlation Between Bank Rakyat and Sysmex
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Sysmex 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 Sysmex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Sysmex, you can compare the effects of market volatilities on Bank Rakyat and Sysmex 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 Sysmex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Sysmex.
Diversification Opportunities for Bank Rakyat and Sysmex
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Sysmex is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Sysmex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysmex 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 Sysmex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysmex has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Sysmex go up and down completely randomly.
Pair Corralation between Bank Rakyat and Sysmex
Assuming the 90 days horizon Bank Rakyat is expected to under-perform the Sysmex. In addition to that, Bank Rakyat is 11.93 times more volatile than Sysmex. It trades about -0.19 of its total potential returns per unit of risk. Sysmex is currently generating about -0.22 per unit of volatility. If you would invest 2,027 in Sysmex on August 28, 2024 and sell it today you would lose (14.00) from holding Sysmex or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Rakyat vs. Sysmex
Performance |
| Timeline |
| Bank Rakyat |
| Sysmex |
Bank Rakyat and Sysmex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Sysmex
The main advantage of trading using opposite Bank Rakyat and Sysmex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Sysmex 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 Sysmex will offset losses from the drop in Sysmex's long position.The idea behind Bank Rakyat and Sysmex pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sysmex vs. Intuitive Surgical | Sysmex vs. Merit Medical Systems | Sysmex vs. Carl Zeiss Meditec | Sysmex vs. Sartorius Aktiengesellschaft |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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