Correlation Between BANK RAKYAT and Workday
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Workday 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 Workday 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 Workday, you can compare the effects of market volatilities on BANK RAKYAT and Workday 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 Workday. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Workday.
Diversification Opportunities for BANK RAKYAT and Workday
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between BANK and Workday is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Workday in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workday 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 Workday. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workday has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Workday go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Workday
Assuming the 90 days trading horizon BANK RAKYAT IND is expected to under-perform the Workday. In addition to that, BANK RAKYAT is 1.24 times more volatile than Workday. It trades about -0.16 of its total potential returns per unit of risk. Workday is currently generating about 0.03 per unit of volatility. If you would invest 23,925 in Workday on November 28, 2024 and sell it today you would earn a total of 270.00 from holding Workday or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BANK RAKYAT IND vs. Workday
Performance |
| Timeline |
| BANK RAKYAT IND |
| Workday |
BANK RAKYAT and Workday Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Workday
The main advantage of trading using opposite BANK RAKYAT and Workday positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Workday 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 Workday will offset losses from the drop in Workday's long position.| BANK RAKYAT vs. Sumitomo Chemical | BANK RAKYAT vs. TIANDE CHEMICAL | BANK RAKYAT vs. X FAB Silicon Foundries | BANK RAKYAT vs. X FAB Silicon Foundries |
| Workday vs. PICKN PAY STORES | Workday vs. Stag Industrial | Workday vs. Nippon Light Metal | Workday vs. BJs Wholesale Club |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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