Correlation Between Bank Rakyat and PF Industries
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and PF Industries 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 PF Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and PF Industries, you can compare the effects of market volatilities on Bank Rakyat and PF Industries 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 PF Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and PF Industries.
Diversification Opportunities for Bank Rakyat and PF Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and PFIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and PF Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Industries 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 PF Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Industries has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and PF Industries go up and down completely randomly.
Pair Corralation between Bank Rakyat and PF Industries
If you would invest (100.00) in PF Industries on December 26, 2024 and sell it today you would earn a total of 100.00 from holding PF Industries 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. PF Industries
Performance |
Timeline |
Bank Rakyat |
PF Industries |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Rakyat and PF Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Rakyat and PF Industries
The main advantage of trading using opposite Bank Rakyat and PF Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, PF Industries 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 PF Industries will offset losses from the drop in PF Industries' 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 |
PF Industries vs. Kennametal | PF Industries vs. Hillman Solutions Corp | PF Industries vs. AB SKF | PF Industries vs. Eastern Co |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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