Correlation Between BANK RAKYAT and TTM TECHNOLOGIES

Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and TTM TECHNOLOGIES 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 TTM TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BANK RAKYAT IND and TTM TECHNOLOGIES , you can compare the effects of market volatilities on BANK RAKYAT and TTM TECHNOLOGIES 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 TTM TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and TTM TECHNOLOGIES.

Diversification Opportunities for BANK RAKYAT and TTM TECHNOLOGIES

0.58

Correlation Coefficient

BANK RAKYAT  TTM TECHNOLOGIES

Very weak diversification

The 3 months correlation between BANK and TTM is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and TTM TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTM TECHNOLOGIES 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 IND are associated (or correlated) with TTM TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTM TECHNOLOGIES has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and TTM TECHNOLOGIES go up and down completely randomly.

Pair Corralation between BANK RAKYAT and TTM TECHNOLOGIES

Assuming the 90 days trading horizon BANK RAKYAT IND is expected to generate 0.48 times more return on investment than TTM TECHNOLOGIES. However, BANK RAKYAT IND is 2.09 times less risky than TTM TECHNOLOGIES. It trades about -0.13 of its potential returns per unit of risk. TTM TECHNOLOGIES is currently generating about -0.07 per unit of risk. If you would invest  24.00  in BANK RAKYAT IND on December 20, 2024 and sell it today you would lose (3.00) from holding BANK RAKYAT IND or give up 12.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

BANK RAKYAT IND  vs.  TTM TECHNOLOGIES

BANK RAKYAT IND

Risk-Adjusted Performance

Very Weak

Over the last 90 days BANK RAKYAT IND has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

TTM TECHNOLOGIES

Risk-Adjusted Performance

Very Weak

Over the last 90 days TTM TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with BANK RAKYAT and TTM TECHNOLOGIES

The main advantage of trading using opposite BANK RAKYAT and TTM TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK RAKYAT position performs unexpectedly, TTM TECHNOLOGIES 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 TTM TECHNOLOGIES will offset losses from the drop in TTM TECHNOLOGIES's long position.

The idea behind BANK RAKYAT IND and TTM TECHNOLOGIES pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.