Correlation Between Bank Rakyat and Golden Flower
Can any of the company-specific risk be diversified away by investing in both Bank Rakyat and Golden Flower 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 Golden Flower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Rakyat Indonesia and Golden Flower Tbk, you can compare the effects of market volatilities on Bank Rakyat and Golden Flower 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 Golden Flower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Rakyat and Golden Flower.
Diversification Opportunities for Bank Rakyat and Golden Flower
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Rakyat Indonesia and Golden Flower Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Flower Tbk 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 Indonesia are associated (or correlated) with Golden Flower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Flower Tbk has no effect on the direction of Bank Rakyat i.e., Bank Rakyat and Golden Flower go up and down completely randomly.
Pair Corralation between Bank Rakyat and Golden Flower
If you would invest 0.00 in Golden Flower Tbk on March 14, 2024 and sell it today you would earn a total of 0.00 from holding Golden Flower Tbk or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.92% |
Values | Daily Returns |
Bank Rakyat Indonesia vs. Golden Flower Tbk
Performance |
Timeline |
Bank Rakyat Indonesia |
Golden Flower Tbk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Bank Rakyat and Golden Flower Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Rakyat and Golden Flower
The main advantage of trading using opposite Bank Rakyat and Golden Flower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Rakyat position performs unexpectedly, Golden Flower 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 Golden Flower will offset losses from the drop in Golden Flower's long position.Bank Rakyat vs. Bank Central Asia | Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Bank Negara Indonesia | Bank Rakyat vs. Telkom Indonesia Tbk |
Golden Flower vs. Trisula International Tbk | Golden Flower vs. Pollux Properti Indonesia | Golden Flower vs. Trisula Textile Industries | Golden Flower vs. Tifico Fiber Indonesia |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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