Correlation Between RCB OE and Romanian Traded

By analyzing existing cross correlation between RCB OE TS and Romanian Traded Index you can compare the effects of market volatilities on RCB OE and Romanian Traded 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 RCB OE with a short position of Romanian Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCB OE and Romanian Traded.

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Can any of the company-specific risk be diversified away by investing in both RCB OE and Romanian Traded at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing RCB OE and Romanian Traded into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for RCB OE and Romanian Traded

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Good diversification

The 3 months correlation between AT0000A2AY86 and Romanian is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding RCB OE TS Z Dt Bank and Romanian Traded Index In RON in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Romanian Traded Index and RCB OE 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 RCB OE TS are associated (or correlated) with Romanian Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Romanian Traded Index has no effect on the direction of RCB OE i.e. RCB OE and Romanian Traded go up and down completely randomly.

Pair Corralation between RCB OE and Romanian Traded

If you would invest  3,518  in Romanian Traded Index on May 7, 2020 and sell it today you would lose (472.00)  from holding Romanian Traded Index or give up 13.42% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

RCB OE TS Z Dt Bank  vs.  Romanian Traded Index In RON

 Performance (%) 

RCB OE Risk-Adjusted Performance

Over the last 30 days RCB OE TS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, RCB OE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
Romanian Traded Index 

Romanian Traded Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Romanian Traded Index are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days. Despite nearly weak fundamental indicators, Romanian Traded layed out solid returns over the last few months and may actually be approaching a breakup point.

RCB OE and Romanian Traded Volatility Contrast

 Predicted Return Density 
Check out your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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