Correlation Between BANK RAKYAT and CALTAGIRONE EDITORE
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE, you can compare the effects of market volatilities on BANK RAKYAT and CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and CALTAGIRONE EDITORE.
Diversification Opportunities for BANK RAKYAT and CALTAGIRONE EDITORE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and CALTAGIRONE is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and CALTAGIRONE EDITORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CALTAGIRONE EDITORE has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and CALTAGIRONE EDITORE go up and down completely randomly.
Pair Corralation between BANK RAKYAT and CALTAGIRONE EDITORE
Assuming the 90 days trading horizon BANK RAKYAT is expected to generate 30.09 times less return on investment than CALTAGIRONE EDITORE. In addition to that, BANK RAKYAT is 1.26 times more volatile than CALTAGIRONE EDITORE. It trades about 0.0 of its total potential returns per unit of risk. CALTAGIRONE EDITORE is currently generating about 0.05 per unit of volatility. If you would invest 88.00 in CALTAGIRONE EDITORE on October 11, 2024 and sell it today you would earn a total of 43.00 from holding CALTAGIRONE EDITORE or generate 48.86% 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. CALTAGIRONE EDITORE
Performance |
| Timeline |
| BANK RAKYAT IND |
| CALTAGIRONE EDITORE |
BANK RAKYAT and CALTAGIRONE EDITORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and CALTAGIRONE EDITORE
The main advantage of trading using opposite BANK RAKYAT and CALTAGIRONE EDITORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE will offset losses from the drop in CALTAGIRONE EDITORE's long position.| BANK RAKYAT vs. BANK OF CHINA | BANK RAKYAT vs. Direct Line Insurance | BANK RAKYAT vs. Erste Group Bank | BANK RAKYAT vs. Guangdong Investment Limited |
| CALTAGIRONE EDITORE vs. Apple Inc | CALTAGIRONE EDITORE vs. Apple Inc | CALTAGIRONE EDITORE vs. Apple Inc | CALTAGIRONE EDITORE vs. Apple Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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