Correlation Between Bank Rakyat and Ceapro
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Ceapro 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 Ceapro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Ceapro Inc, you can compare the effects of market volatilities on Bank Rakyat and Ceapro 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 Ceapro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Ceapro.
Diversification Opportunities for Bank Rakyat and Ceapro
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Ceapro is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Ceapro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceapro Inc 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 Ceapro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceapro Inc has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Ceapro go up and down completely randomly.
Pair Corralation between Bank Rakyat and Ceapro
If you would invest 593.00 in Ceapro Inc on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Ceapro Inc or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Bank Rakyat vs. Ceapro Inc
Performance |
Timeline |
Bank Rakyat |
Ceapro Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Ceapro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Rakyat and Ceapro
The main advantage of trading using opposite Bank Rakyat and Ceapro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Ceapro 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 Ceapro will offset losses from the drop in Ceapro'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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