Correlation Between Bank BRISyariah and Exploitasi Energi
Can any of the company-specific risk be diversified away by investing in both Bank BRISyariah and Exploitasi Energi 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 Exploitasi Energi 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 Exploitasi Energi Indonesia, you can compare the effects of market volatilities on Bank BRISyariah and Exploitasi Energi 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 Exploitasi Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank BRISyariah and Exploitasi Energi.
Diversification Opportunities for Bank BRISyariah and Exploitasi Energi
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Exploitasi is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank BRISyariah Tbk and Exploitasi Energi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploitasi Energi 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 Exploitasi Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploitasi Energi has no effect on the direction of Bank BRISyariah i.e., Bank BRISyariah and Exploitasi Energi go up and down completely randomly.
Pair Corralation between Bank BRISyariah and Exploitasi Energi
Assuming the 90 days trading horizon Bank BRISyariah Tbk is expected to under-perform the Exploitasi Energi. But the stock apears to be less risky and, when comparing its historical volatility, Bank BRISyariah Tbk is 3.93 times less risky than Exploitasi Energi. The stock trades about -0.04 of its potential returns per unit of risk. The Exploitasi Energi Indonesia is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Exploitasi Energi Indonesia on August 29, 2024 and sell it today you would earn a total of 200.00 from holding Exploitasi Energi Indonesia or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank BRISyariah Tbk vs. Exploitasi Energi Indonesia
Performance |
| Timeline |
| Bank BRISyariah Tbk |
| Exploitasi Energi |
Bank BRISyariah and Exploitasi Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank BRISyariah and Exploitasi Energi
The main advantage of trading using opposite Bank BRISyariah and Exploitasi Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank BRISyariah position performs unexpectedly, Exploitasi Energi 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 Exploitasi Energi will offset losses from the drop in Exploitasi Energi's long position.| Bank BRISyariah vs. Aneka Tambang Persero | Bank BRISyariah vs. Sido Muncul PT | Bank BRISyariah vs. Indofood Cbp Sukses | Bank BRISyariah vs. Bank Tabungan Pensiunan |
| Exploitasi Energi vs. Central Proteina Prima | Exploitasi Energi vs. Darma Henwa Tbk | Exploitasi Energi vs. Bakrieland Development Tbk | Exploitasi Energi vs. Energi Mega Persada |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |