Correlation Between Bank Ganesha and Bank BRISyariah
Can any of the company-specific risk be diversified away by investing in both Bank Ganesha and Bank BRISyariah 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 Ganesha and Bank BRISyariah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Ganesha Tbk and Bank BRISyariah Tbk, you can compare the effects of market volatilities on Bank Ganesha and Bank BRISyariah 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 Ganesha with a short position of Bank BRISyariah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ganesha and Bank BRISyariah.
Diversification Opportunities for Bank Ganesha and Bank BRISyariah
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Bank is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ganesha Tbk and Bank BRISyariah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank BRISyariah Tbk and Bank Ganesha 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 Ganesha Tbk are associated (or correlated) with Bank BRISyariah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank BRISyariah Tbk has no effect on the direction of Bank Ganesha i.e., Bank Ganesha and Bank BRISyariah go up and down completely randomly.
Pair Corralation between Bank Ganesha and Bank BRISyariah
Assuming the 90 days trading horizon Bank Ganesha Tbk is expected to generate 1.17 times more return on investment than Bank BRISyariah. However, Bank Ganesha is 1.17 times more volatile than Bank BRISyariah Tbk. It trades about 0.06 of its potential returns per unit of risk. Bank BRISyariah Tbk is currently generating about 0.03 per unit of risk. If you would invest 6,700 in Bank Ganesha Tbk on September 3, 2024 and sell it today you would earn a total of 1,600 from holding Bank Ganesha Tbk or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Ganesha Tbk vs. Bank BRISyariah Tbk
Performance |
| Timeline |
| Bank Ganesha Tbk |
| Bank BRISyariah Tbk |
Bank Ganesha and Bank BRISyariah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ganesha and Bank BRISyariah
The main advantage of trading using opposite Bank Ganesha and Bank BRISyariah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ganesha position performs unexpectedly, Bank BRISyariah 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 Bank BRISyariah will offset losses from the drop in Bank BRISyariah's long position.| Bank Ganesha vs. Bk Harda Internasional | Bank Ganesha vs. Bank Yudha Bhakti | Bank Ganesha vs. Bank Mnc Internasional | Bank Ganesha vs. Bank Capital Indonesia |
| Bank BRISyariah vs. Aneka Tambang Persero | Bank BRISyariah vs. Sido Muncul PT | Bank BRISyariah vs. Indofood Cbp Sukses | Bank BRISyariah vs. Bank Tabungan Pensiunan |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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