Correlation Between BANK RAKYAT and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Brixmor Property 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 Brixmor Property 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 Brixmor Property Group, you can compare the effects of market volatilities on BANK RAKYAT and Brixmor Property 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 Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Brixmor Property.
Diversification Opportunities for BANK RAKYAT and Brixmor Property
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and Brixmor is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Brixmor Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property 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 Brixmor Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brixmor Property has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Brixmor Property go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Brixmor Property
Assuming the 90 days trading horizon BANK RAKYAT IND is expected to under-perform the Brixmor Property. In addition to that, BANK RAKYAT is 2.11 times more volatile than Brixmor Property Group. It trades about -0.01 of its total potential returns per unit of risk. Brixmor Property Group is currently generating about 0.1 per unit of volatility. If you would invest 1,815 in Brixmor Property Group on August 31, 2024 and sell it today you would earn a total of 1,025 from holding Brixmor Property Group or generate 56.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK RAKYAT IND vs. Brixmor Property Group
Performance |
| Timeline |
| BANK RAKYAT IND |
| Brixmor Property |
BANK RAKYAT and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Brixmor Property
The main advantage of trading using opposite BANK RAKYAT and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Brixmor Property 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 Brixmor Property will offset losses from the drop in Brixmor Property's long position.| BANK RAKYAT vs. Compugroup Medical SE | BANK RAKYAT vs. Japan Medical Dynamic | BANK RAKYAT vs. DOCDATA | BANK RAKYAT vs. National Storage Affiliates |
| Brixmor Property vs. HEALTHCARE REAL A | Brixmor Property vs. EPSILON HEALTHCARE LTD | Brixmor Property vs. Mitsui Chemicals | Brixmor Property vs. CVS Health |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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