Correlation Between BANK RAKYAT and Citigroup
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By analyzing existing cross correlation between BANK RAKYAT IND and Citigroup, you can compare the effects of market volatilities on BANK RAKYAT and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Citigroup.
Diversification Opportunities for BANK RAKYAT and Citigroup
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Citigroup is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Citigroup go up and down completely randomly.
Pair Corralation between BANK RAKYAT and Citigroup
Assuming the 90 days trading horizon BANK RAKYAT IND is expected to under-perform the Citigroup. But the stock apears to be less risky and, when comparing its historical volatility, BANK RAKYAT IND is 1.69 times less risky than Citigroup. The stock trades about -0.21 of its potential returns per unit of risk. The Citigroup is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,873 in Citigroup on August 29, 2024 and sell it today you would earn a total of 796.00 from holding Citigroup or generate 13.55% 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. Citigroup
Performance |
| Timeline |
| BANK RAKYAT IND |
| Citigroup |
BANK RAKYAT and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK RAKYAT and Citigroup
The main advantage of trading using opposite BANK RAKYAT and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| BANK RAKYAT vs. Apple Inc | BANK RAKYAT vs. Apple Inc | BANK RAKYAT vs. Microsoft | BANK RAKYAT vs. Microsoft |
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 CEOs Directory module to screen CEOs from public companies around the world.
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