Correlation Between Bank BRISyariah and Sumber Alfaria
Can any of the company-specific risk be diversified away by investing in both Bank BRISyariah and Sumber Alfaria 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 BRISyariah and Sumber Alfaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank BRISyariah Tbk and Sumber Alfaria Trijaya, you can compare the effects of market volatilities on Bank BRISyariah and Sumber Alfaria 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 BRISyariah with a short position of Sumber Alfaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank BRISyariah and Sumber Alfaria.
Diversification Opportunities for Bank BRISyariah and Sumber Alfaria
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Sumber is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank BRISyariah Tbk and Sumber Alfaria Trijaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Alfaria Trijaya and Bank BRISyariah 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 BRISyariah Tbk are associated (or correlated) with Sumber Alfaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Alfaria Trijaya has no effect on the direction of Bank BRISyariah i.e., Bank BRISyariah and Sumber Alfaria go up and down completely randomly.
Pair Corralation between Bank BRISyariah and Sumber Alfaria
Assuming the 90 days trading horizon Bank BRISyariah Tbk is expected to generate 1.58 times more return on investment than Sumber Alfaria. However, Bank BRISyariah is 1.58 times more volatile than Sumber Alfaria Trijaya. It trades about 0.1 of its potential returns per unit of risk. Sumber Alfaria Trijaya is currently generating about 0.01 per unit of risk. If you would invest 167,079 in Bank BRISyariah Tbk on September 2, 2024 and sell it today you would earn a total of 122,921 from holding Bank BRISyariah Tbk or generate 73.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank BRISyariah Tbk vs. Sumber Alfaria Trijaya
Performance |
| Timeline |
| Bank BRISyariah Tbk |
| Sumber Alfaria Trijaya |
Bank BRISyariah and Sumber Alfaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank BRISyariah and Sumber Alfaria
The main advantage of trading using opposite Bank BRISyariah and Sumber Alfaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank BRISyariah position performs unexpectedly, Sumber Alfaria 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 Sumber Alfaria will offset losses from the drop in Sumber Alfaria's long position.| Bank BRISyariah vs. Ace Hardware Indonesia | Bank BRISyariah vs. Merdeka Copper Gold | Bank BRISyariah vs. Mitra Pinasthika Mustika | Bank BRISyariah vs. Jakarta Int Hotels |
| Sumber Alfaria vs. Elang Mahkota Teknologi | Sumber Alfaria vs. Ace Hardware Indonesia | Sumber Alfaria vs. BFI Finance Indonesia | Sumber Alfaria vs. Tower Bersama Infrastructure |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |