Correlation Between BANK RAKYAT and Seven I
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Seven I 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 Seven I 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 Seven i Holdings, you can compare the effects of market volatilities on BANK RAKYAT and Seven I 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 Seven I. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Seven I.
Diversification Opportunities for BANK RAKYAT and Seven I
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and Seven is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Seven i Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven i 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 Seven I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven i Holdings has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Seven I go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Seven I
If you would invest 1,303 in Seven i Holdings on September 1, 2024 and sell it today you would earn a total of 315.00 from holding Seven i Holdings or generate 24.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BANK RAKYAT IND vs. Seven i Holdings
Performance |
| Timeline |
| BANK RAKYAT IND |
| Seven i Holdings |
BANK RAKYAT and Seven I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Seven I
The main advantage of trading using opposite BANK RAKYAT and Seven I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Seven I 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 Seven I will offset losses from the drop in Seven I's long position.| BANK RAKYAT vs. Genco Shipping Trading | BANK RAKYAT vs. Highlight Communications AG | BANK RAKYAT vs. MGIC INVESTMENT | BANK RAKYAT vs. WisdomTree Investments |
| Seven I vs. TESCO PLC LS 0633333 | Seven I vs. Superior Plus Corp | Seven I vs. NMI Holdings | Seven I vs. Origin Agritech |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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