Correlation Between BANK RAKYAT and Keysight Technologies
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Keysight Technologies 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 Keysight Technologies 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 Keysight Technologies, you can compare the effects of market volatilities on BANK RAKYAT and Keysight Technologies 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 Keysight Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Keysight Technologies.
Diversification Opportunities for BANK RAKYAT and Keysight Technologies
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Keysight is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Keysight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keysight Technologies 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 Keysight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keysight Technologies has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Keysight Technologies go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Keysight Technologies
Assuming the 90 days trading horizon BANK RAKYAT IND is expected to under-perform the Keysight Technologies. In addition to that, BANK RAKYAT is 1.06 times more volatile than Keysight Technologies. It trades about -0.03 of its total potential returns per unit of risk. Keysight Technologies is currently generating about 0.02 per unit of volatility. If you would invest 15,248 in Keysight Technologies on September 12, 2024 and sell it today you would earn a total of 1,246 from holding Keysight Technologies or generate 8.17% 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. Keysight Technologies
Performance |
| Timeline |
| BANK RAKYAT IND |
| Keysight Technologies |
BANK RAKYAT and Keysight Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Keysight Technologies
The main advantage of trading using opposite BANK RAKYAT and Keysight Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Keysight Technologies 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 Keysight Technologies will offset losses from the drop in Keysight Technologies' long position.| BANK RAKYAT vs. ALGOMA STEEL GROUP | BANK RAKYAT vs. CVW CLEANTECH INC | BANK RAKYAT vs. ULTRA CLEAN HLDGS | BANK RAKYAT vs. United States Steel |
| Keysight Technologies vs. HEXAGON AB ADR1 | Keysight Technologies vs. Superior Plus Corp | Keysight Technologies vs. SIVERS SEMICONDUCTORS AB | Keysight Technologies vs. NorAm Drilling AS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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