Correlation Between Goliath Film and Bank Rakyat
Can any of the company-specific risk be diversified away by investing in both Goliath Film and Bank Rakyat 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 Goliath Film and Bank Rakyat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goliath Film and and Bank Rakyat, you can compare the effects of market volatilities on Goliath Film and Bank Rakyat 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 Goliath Film with a short position of Bank Rakyat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goliath Film and Bank Rakyat.
Diversification Opportunities for Goliath Film and Bank Rakyat
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goliath and Bank is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Goliath Film and and Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Rakyat and Goliath Film 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 Goliath Film and are associated (or correlated) with Bank Rakyat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Rakyat has no effect on the direction of Goliath Film i.e., Goliath Film and Bank Rakyat go up and down completely randomly.
Pair Corralation between Goliath Film and Bank Rakyat
Given the investment horizon of 90 days Goliath Film and is expected to under-perform the Bank Rakyat. In addition to that, Goliath Film is 1.48 times more volatile than Bank Rakyat. It trades about -0.27 of its total potential returns per unit of risk. Bank Rakyat is currently generating about -0.36 per unit of volatility. If you would invest 1,533 in Bank Rakyat on September 1, 2024 and sell it today you would lose (187.00) from holding Bank Rakyat or give up 12.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Goliath Film and vs. Bank Rakyat
Performance |
| Timeline |
| Goliath Film |
| Bank Rakyat |
Goliath Film and Bank Rakyat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goliath Film and Bank Rakyat
The main advantage of trading using opposite Goliath Film and Bank Rakyat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goliath Film position performs unexpectedly, Bank Rakyat 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 Bank Rakyat will offset losses from the drop in Bank Rakyat's long position.| Goliath Film vs. HUMANA INC | Goliath Film vs. Aquagold International | Goliath Film vs. Barloworld Ltd ADR | Goliath Film vs. Thrivent High Yield |
| Bank Rakyat vs. Piraeus Bank SA | Bank Rakyat vs. Turkiye Garanti Bankasi | Bank Rakyat vs. Delhi Bank Corp | Bank Rakyat vs. Uwharrie Capital Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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