Correlation Between Bank Rakyat and Wayne Savings
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Wayne Savings 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 Wayne Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Wayne Savings Bancshares, you can compare the effects of market volatilities on Bank Rakyat and Wayne Savings 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 Wayne Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Wayne Savings.
Diversification Opportunities for Bank Rakyat and Wayne Savings
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Wayne is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Wayne Savings Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayne Savings Bancshares 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 Wayne Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayne Savings Bancshares has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Wayne Savings go up and down completely randomly.
Pair Corralation between Bank Rakyat and Wayne Savings
If you would invest 2,841 in Wayne Savings Bancshares on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Wayne Savings Bancshares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Rakyat vs. Wayne Savings Bancshares
Performance |
| Timeline |
| Bank Rakyat |
| Wayne Savings Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Wayne Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Wayne Savings
The main advantage of trading using opposite Bank Rakyat and Wayne Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Wayne Savings 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 Wayne Savings will offset losses from the drop in Wayne Savings' 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 |
| Wayne Savings vs. First IC | Wayne Savings vs. CCFNB Bancorp | Wayne Savings vs. Glen Burnie Bancorp | Wayne Savings vs. Main Street Financial |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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