Correlation Between Bank Rakyat and Computer Task
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Computer Task 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 Computer Task into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat and Computer Task Group, you can compare the effects of market volatilities on Bank Rakyat and Computer Task 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 Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Computer Task.
Diversification Opportunities for Bank Rakyat and Computer Task
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Computer is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat and Computer Task Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Task Group 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 Computer Task. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Task Group has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Computer Task go up and down completely randomly.
Pair Corralation between Bank Rakyat and Computer Task
If you would invest 1,050 in Computer Task Group on March 5, 2024 and sell it today you would earn a total of 0.00 from holding Computer Task Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Bank Rakyat vs. Computer Task Group
Performance |
Timeline |
Bank Rakyat |
Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Rakyat and Computer Task Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Rakyat and Computer Task
The main advantage of trading using opposite Bank Rakyat and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Computer Task 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 Computer Task will offset losses from the drop in Computer Task's long position.Bank Rakyat vs. Danske Bank AS | Bank Rakyat vs. Barloworld Ltd ADR | Bank Rakyat vs. Via Renewables | Bank Rakyat vs. T Rowe Price |
Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Clarivate Plc | Computer Task vs. Nayax |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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