Correlation Between Bank Rakyat and XS Financial
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and XS Financial 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 XS Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and XS Financial, you can compare the effects of market volatilities on Bank Rakyat and XS Financial 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 XS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and XS Financial.
Diversification Opportunities for Bank Rakyat and XS Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and XSHLF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and XS Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XS Financial 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 XS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XS Financial has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and XS Financial go up and down completely randomly.
Pair Corralation between Bank Rakyat and XS Financial
If you would invest (100.00) in XS Financial on November 29, 2024 and sell it today you would earn a total of 100.00 from holding XS Financial or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Rakyat vs. XS Financial
Performance |
| Timeline |
| Bank Rakyat |
| XS Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Rakyat and XS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and XS Financial
The main advantage of trading using opposite Bank Rakyat and XS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, XS Financial 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 XS Financial will offset losses from the drop in XS Financial's long position.| Bank Rakyat vs. HDFC Bank Limited | Bank Rakyat vs. China Merchants Bank | Bank Rakyat vs. China Merchants Bank | Bank Rakyat vs. Fifth Third Bancorp |
| XS Financial vs. Zip Co Limited | XS Financial vs. KYN Capital Group | XS Financial vs. CYIOS | XS Financial vs. Cosmos Group Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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