Correlation Between BANK RAKYAT and SCOR SE
Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and SCOR SE 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 SCOR SE 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 SCOR SE, you can compare the effects of market volatilities on BANK RAKYAT and SCOR SE 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 SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and SCOR SE.
Diversification Opportunities for BANK RAKYAT and SCOR SE
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and SCOR is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE 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 SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and SCOR SE go up and down completely randomly.
Pair Corralation between BANK RAKYAT and SCOR SE
Assuming the 90 days trading horizon BANK RAKYAT IND is expected to under-perform the SCOR SE. But the stock apears to be less risky and, when comparing its historical volatility, BANK RAKYAT IND is 1.13 times less risky than SCOR SE. The stock trades about -0.01 of its potential returns per unit of risk. The SCOR SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,033 in SCOR SE on November 5, 2024 and sell it today you would earn a total of 455.00 from holding SCOR SE or generate 22.38% 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. SCOR SE
Performance |
| Timeline |
| BANK RAKYAT IND |
| SCOR SE |
BANK RAKYAT and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and SCOR SE
The main advantage of trading using opposite BANK RAKYAT and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.| BANK RAKYAT vs. BORR DRILLING NEW | BANK RAKYAT vs. RCS MediaGroup SpA | BANK RAKYAT vs. AWILCO DRILLING PLC | BANK RAKYAT vs. United Breweries Co |
| SCOR SE vs. SIDETRADE EO 1 | SCOR SE vs. FAST RETAIL ADR | SCOR SE vs. Renesas Electronics | SCOR SE vs. KIMBALL ELECTRONICS |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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