Correlation Between BANK RAKYAT and Halliburton
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Halliburton 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 Halliburton 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 Halliburton, you can compare the effects of market volatilities on BANK RAKYAT and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Halliburton.
Diversification Opportunities for BANK RAKYAT and Halliburton
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and Halliburton is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Halliburton go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Halliburton
Assuming the 90 days trading horizon BANK RAKYAT IND is expected to under-perform the Halliburton. But the stock apears to be less risky and, when comparing its historical volatility, BANK RAKYAT IND is 1.19 times less risky than Halliburton. The stock trades about -0.07 of its potential returns per unit of risk. The Halliburton is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,562 in Halliburton on August 29, 2024 and sell it today you would earn a total of 471.00 from holding Halliburton or generate 18.38% 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. Halliburton
Performance |
| Timeline |
| BANK RAKYAT IND |
| Halliburton |
BANK RAKYAT and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Halliburton
The main advantage of trading using opposite BANK RAKYAT and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| BANK RAKYAT vs. Ultra Clean Holdings | BANK RAKYAT vs. United Airlines Holdings | BANK RAKYAT vs. SINGAPORE AIRLINES | BANK RAKYAT vs. PT Bank Maybank |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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