Correlation Between BANK RAKYAT and PEH WERTPAPIER
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and PEH WERTPAPIER 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 PEH WERTPAPIER 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 PEH WERTPAPIER, you can compare the effects of market volatilities on BANK RAKYAT and PEH WERTPAPIER 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 PEH WERTPAPIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and PEH WERTPAPIER.
Diversification Opportunities for BANK RAKYAT and PEH WERTPAPIER
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and PEH is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and PEH WERTPAPIER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEH WERTPAPIER 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 PEH WERTPAPIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEH WERTPAPIER has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and PEH WERTPAPIER go up and down completely randomly.
Pair Corralation between BANK RAKYAT and PEH WERTPAPIER
Assuming the 90 days trading horizon BANK RAKYAT IND is expected to under-perform the PEH WERTPAPIER. In addition to that, BANK RAKYAT is 2.51 times more volatile than PEH WERTPAPIER. It trades about -0.03 of its total potential returns per unit of risk. PEH WERTPAPIER is currently generating about 0.06 per unit of volatility. If you would invest 1,966 in PEH WERTPAPIER on November 3, 2024 and sell it today you would earn a total of 334.00 from holding PEH WERTPAPIER or generate 16.99% 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. PEH WERTPAPIER
Performance |
| Timeline |
| BANK RAKYAT IND |
| PEH WERTPAPIER |
BANK RAKYAT and PEH WERTPAPIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and PEH WERTPAPIER
The main advantage of trading using opposite BANK RAKYAT and PEH WERTPAPIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, PEH WERTPAPIER 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 PEH WERTPAPIER will offset losses from the drop in PEH WERTPAPIER's long position.| BANK RAKYAT vs. MONEYSUPERMARKET | BANK RAKYAT vs. PLANT VEDA FOODS | BANK RAKYAT vs. Tyson Foods | BANK RAKYAT vs. Webster Financial |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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