Correlation Between Bank Rakyat and Argo Group
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Argo Group 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 Argo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Argo Group International, you can compare the effects of market volatilities on Bank Rakyat and Argo Group 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 Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Argo Group.
Diversification Opportunities for Bank Rakyat and Argo Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Argo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Argo Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group International 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 are associated (or correlated) with Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group International has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Argo Group go up and down completely randomly.
Pair Corralation between Bank Rakyat and Argo Group
If you would invest (100.00) in Argo Group International on December 26, 2024 and sell it today you would earn a total of 100.00 from holding Argo Group International or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bank Rakyat vs. Argo Group International
Performance |
Timeline |
Bank Rakyat |
Argo Group International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Rakyat and Argo Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Rakyat and Argo Group
The main advantage of trading using opposite Bank Rakyat and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Eurobank Ergasias Services | Bank Rakyat vs. Nedbank Group | Bank Rakyat vs. Standard Bank Group |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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