Correlation Between BANK RAKYAT and Zoom Video
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Zoom Video 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 Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK RAKYAT IND and Zoom Video Communications, you can compare the effects of market volatilities on BANK RAKYAT and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Zoom Video.
Diversification Opportunities for BANK RAKYAT and Zoom Video
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Zoom is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 IND are associated (or correlated) with Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Zoom Video go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Zoom Video
Assuming the 90 days trading horizon BANK RAKYAT IND is expected to under-perform the Zoom Video. In addition to that, BANK RAKYAT is 1.19 times more volatile than Zoom Video Communications. It trades about -0.01 of its total potential returns per unit of risk. Zoom Video Communications is currently generating about 0.19 per unit of volatility. If you would invest 5,071 in Zoom Video Communications on November 3, 2024 and sell it today you would earn a total of 3,333 from holding Zoom Video Communications or generate 65.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK RAKYAT IND vs. Zoom Video Communications
Performance |
| Timeline |
| BANK RAKYAT IND |
| Zoom Video Communications |
BANK RAKYAT and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Zoom Video
The main advantage of trading using opposite BANK RAKYAT and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| BANK RAKYAT vs. MONEYSUPERMARKET | BANK RAKYAT vs. PLANT VEDA FOODS | BANK RAKYAT vs. Tyson Foods | BANK RAKYAT vs. Webster Financial |
| Zoom Video vs. NH HOTEL GROUP | Zoom Video vs. Allegheny Technologies Incorporated | Zoom Video vs. Addtech AB | Zoom Video vs. InterContinental Hotels Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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