Correlation Between BANK RAKYAT and Bill Holdings
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Bill Holdings 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 Bill Holdings 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 Bill Holdings, you can compare the effects of market volatilities on BANK RAKYAT and Bill Holdings 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 Bill Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Bill Holdings.
Diversification Opportunities for BANK RAKYAT and Bill Holdings
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Bill is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Bill Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Holdings 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 Bill Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Holdings has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Bill Holdings go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Bill Holdings
If you would invest 5,226 in Bill Holdings on August 30, 2024 and sell it today you would earn a total of 3,479 from holding Bill Holdings or generate 66.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BANK RAKYAT IND vs. Bill Holdings
Performance |
| Timeline |
| BANK RAKYAT IND |
| Bill Holdings |
BANK RAKYAT and Bill Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Bill Holdings
The main advantage of trading using opposite BANK RAKYAT and Bill Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Bill Holdings 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 Bill Holdings will offset losses from the drop in Bill Holdings' long position.| BANK RAKYAT vs. SCANSOURCE | BANK RAKYAT vs. SOLSTAD OFFSHORE NK | BANK RAKYAT vs. AM EAGLE OUTFITTERS | BANK RAKYAT vs. Clean Energy Fuels |
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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 Stocks Directory module to find actively traded stocks across global markets.
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