Correlation Between BANK RAKYAT and FLOW TRADERS
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and FLOW TRADERS 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 FLOW TRADERS 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 FLOW TRADERS LTD, you can compare the effects of market volatilities on BANK RAKYAT and FLOW TRADERS 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 FLOW TRADERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and FLOW TRADERS.
Diversification Opportunities for BANK RAKYAT and FLOW TRADERS
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and FLOW is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and FLOW TRADERS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLOW TRADERS LTD 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 FLOW TRADERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLOW TRADERS LTD has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and FLOW TRADERS go up and down completely randomly.
Pair Corralation between BANK RAKYAT and FLOW TRADERS
Assuming the 90 days trading horizon BANK RAKYAT is expected to generate 2.35 times less return on investment than FLOW TRADERS. In addition to that, BANK RAKYAT is 1.36 times more volatile than FLOW TRADERS LTD. It trades about 0.0 of its total potential returns per unit of risk. FLOW TRADERS LTD is currently generating about 0.02 per unit of volatility. If you would invest 2,036 in FLOW TRADERS LTD on August 29, 2024 and sell it today you would earn a total of 120.00 from holding FLOW TRADERS LTD or generate 5.89% 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. FLOW TRADERS LTD
Performance |
| Timeline |
| BANK RAKYAT IND |
| FLOW TRADERS LTD |
BANK RAKYAT and FLOW TRADERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and FLOW TRADERS
The main advantage of trading using opposite BANK RAKYAT and FLOW TRADERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, FLOW TRADERS 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 FLOW TRADERS will offset losses from the drop in FLOW TRADERS'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 |
| FLOW TRADERS vs. Macquarie Group Limited | FLOW TRADERS vs. MSCI Inc | FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. NMI Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |