Correlation Between BANK RAKYAT and Evolent Health

Can any of the company-specific risk be diversified away by investing in both BANK RAKYAT and Evolent Health 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 Evolent Health 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 Evolent Health, you can compare the effects of market volatilities on BANK RAKYAT and Evolent Health 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 Evolent Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK RAKYAT and Evolent Health.

Diversification Opportunities for BANK RAKYAT and Evolent Health

-0.52

Correlation Coefficient

BANK RAKYAT  Evolent Health

Excellent diversification

The 3 months correlation between BANK and Evolent is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BANK RAKYAT IND and Evolent Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolent Health 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 Evolent Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolent Health has no effect on the direction of BANK RAKYAT i.e., BANK RAKYAT and Evolent Health go up and down completely randomly.

Pair Corralation between BANK RAKYAT and Evolent Health

Assuming the 90 days trading horizon BANK RAKYAT IND is expected to generate 0.88 times more return on investment than Evolent Health. However, BANK RAKYAT IND is 1.13 times less risky than Evolent Health. It trades about -0.01 of its potential returns per unit of risk. Evolent Health is currently generating about -0.03 per unit of risk. If you would invest  27.00  in BANK RAKYAT IND on March 31, 2025 and sell it today you would lose (9.00) from holding BANK RAKYAT IND or give up 33.33% of portfolio value over 90 days.

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

BANK RAKYAT IND  vs.  Evolent Health

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 latest fragile performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Evolent Health

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Evolent Health are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Evolent Health may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with BANK RAKYAT and Evolent Health

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

The idea behind BANK RAKYAT IND and Evolent Health 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.