Correlation Between Bank Rakyat and HNR Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and HNR Acquisition 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 HNR Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and HNR Acquisition Corp, you can compare the effects of market volatilities on Bank Rakyat and HNR Acquisition 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 HNR Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and HNR Acquisition.
Diversification Opportunities for Bank Rakyat and HNR Acquisition
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and HNR is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and HNR Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNR Acquisition Corp 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 HNR Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNR Acquisition Corp has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and HNR Acquisition go up and down completely randomly.
Pair Corralation between Bank Rakyat and HNR Acquisition
If you would invest 107.00 in HNR Acquisition Corp on September 25, 2024 and sell it today you would earn a total of 0.00 from holding HNR Acquisition Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 5.0% |
Values | Daily Returns |
Bank Rakyat vs. HNR Acquisition Corp
Performance |
Timeline |
Bank Rakyat |
HNR Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and HNR Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Rakyat and HNR Acquisition
The main advantage of trading using opposite Bank Rakyat and HNR Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, HNR Acquisition 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 HNR Acquisition will offset losses from the drop in HNR Acquisition's long position.Bank Rakyat vs. Banco Bradesco SA | Bank Rakyat vs. Itau Unibanco Banco | Bank Rakyat vs. Lloyds Banking Group | Bank Rakyat vs. Deutsche Bank AG |
HNR Acquisition vs. A SPAC II | HNR Acquisition vs. Athena Technology Acquisition | HNR Acquisition vs. Welsbach Technology Metals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |