Correlation Between BANK RAKYAT and MeVis Medical
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and MeVis Medical 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 MeVis Medical 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 MeVis Medical Solutions, you can compare the effects of market volatilities on BANK RAKYAT and MeVis Medical 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 MeVis Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and MeVis Medical.
Diversification Opportunities for BANK RAKYAT and MeVis Medical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and MeVis is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and MeVis Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeVis Medical Solutions 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 MeVis Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeVis Medical Solutions has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and MeVis Medical go up and down completely randomly.
Pair Corralation between BANK RAKYAT and MeVis Medical
Assuming the 90 days trading horizon BANK RAKYAT is expected to generate 6.47 times less return on investment than MeVis Medical. In addition to that, BANK RAKYAT is 3.17 times more volatile than MeVis Medical Solutions. It trades about 0.01 of its total potential returns per unit of risk. MeVis Medical Solutions is currently generating about 0.25 per unit of volatility. If you would invest 2,400 in MeVis Medical Solutions on October 24, 2024 and sell it today you would earn a total of 80.00 from holding MeVis Medical Solutions or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK RAKYAT IND vs. MeVis Medical Solutions
Performance |
| Timeline |
| BANK RAKYAT IND |
| MeVis Medical Solutions |
BANK RAKYAT and MeVis Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and MeVis Medical
The main advantage of trading using opposite BANK RAKYAT and MeVis Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, MeVis Medical 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 MeVis Medical will offset losses from the drop in MeVis Medical's long position.| BANK RAKYAT vs. Tsingtao Brewery | BANK RAKYAT vs. Fevertree Drinks PLC | BANK RAKYAT vs. Nufarm Limited | BANK RAKYAT vs. China Resources Beer |
| MeVis Medical vs. GRIFFIN MINING LTD | MeVis Medical vs. SPORT LISBOA E | MeVis Medical vs. USWE SPORTS AB | MeVis Medical vs. Harmony Gold Mining |
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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