Correlation Between Bank BRISyariah and Autopedia Sukses
Can any of the company-specific risk be diversified away by investing in both Bank BRISyariah and Autopedia Sukses 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 Autopedia Sukses 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 Autopedia Sukses Lestari, you can compare the effects of market volatilities on Bank BRISyariah and Autopedia Sukses 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 Autopedia Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank BRISyariah and Autopedia Sukses.
Diversification Opportunities for Bank BRISyariah and Autopedia Sukses
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Autopedia is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank BRISyariah Tbk and Autopedia Sukses Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopedia Sukses Lestari 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 Autopedia Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopedia Sukses Lestari has no effect on the direction of Bank BRISyariah i.e., Bank BRISyariah and Autopedia Sukses go up and down completely randomly.
Pair Corralation between Bank BRISyariah and Autopedia Sukses
Assuming the 90 days trading horizon Bank BRISyariah Tbk is expected to under-perform the Autopedia Sukses. In addition to that, Bank BRISyariah is 1.38 times more volatile than Autopedia Sukses Lestari. It trades about -0.24 of its total potential returns per unit of risk. Autopedia Sukses Lestari is currently generating about -0.02 per unit of volatility. If you would invest 7,400 in Autopedia Sukses Lestari on December 10, 2024 and sell it today you would lose (100.00) from holding Autopedia Sukses Lestari or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank BRISyariah Tbk vs. Autopedia Sukses Lestari
Performance |
| Timeline |
| Bank BRISyariah Tbk |
| Autopedia Sukses Lestari |
Bank BRISyariah and Autopedia Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank BRISyariah and Autopedia Sukses
The main advantage of trading using opposite Bank BRISyariah and Autopedia Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank BRISyariah position performs unexpectedly, Autopedia Sukses 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 Autopedia Sukses will offset losses from the drop in Autopedia Sukses' long position.| Bank BRISyariah vs. Aneka Tambang Persero | ||
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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