Correlation Between Bank Rakyat and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Barclays Capital 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 Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Barclays Capital, you can compare the effects of market volatilities on Bank Rakyat and Barclays Capital 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Barclays Capital.
Diversification Opportunities for Bank Rakyat and Barclays Capital
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Barclays is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Barclays Capital go up and down completely randomly.
Pair Corralation between Bank Rakyat and Barclays Capital
If you would invest 2,842 in Barclays Capital on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Barclays Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank Rakyat vs. Barclays Capital
Performance |
| Timeline |
| Bank Rakyat |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Rakyat and Barclays Capital
The main advantage of trading using opposite Bank Rakyat and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital'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 |
| Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. iShares Core SP | Barclays Capital vs. Vanguard Total Bond |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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