Correlation Between BANK RAKYAT and Blackstone
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on BANK RAKYAT and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Blackstone.
Diversification Opportunities for BANK RAKYAT and Blackstone
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and Blackstone is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Blackstone go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Blackstone
Assuming the 90 days trading horizon BANK RAKYAT is expected to generate 39.8 times less return on investment than Blackstone. In addition to that, BANK RAKYAT is 1.24 times more volatile than Blackstone Group. It trades about 0.0 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.09 per unit of volatility. If you would invest 7,306 in Blackstone Group on September 3, 2024 and sell it today you would earn a total of 10,814 from holding Blackstone Group or generate 148.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK RAKYAT IND vs. Blackstone Group
Performance |
| Timeline |
| BANK RAKYAT IND |
| Blackstone Group |
BANK RAKYAT and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Blackstone
The main advantage of trading using opposite BANK RAKYAT and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| BANK RAKYAT vs. Insurance Australia Group | BANK RAKYAT vs. Consolidated Communications Holdings | BANK RAKYAT vs. Ribbon Communications | BANK RAKYAT vs. Universal Display |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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