Correlation Between Bank BRISyariah and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both Bank BRISyariah and Mitrabahtera Segara 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 Mitrabahtera Segara 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 Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on Bank BRISyariah and Mitrabahtera Segara 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 Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank BRISyariah and Mitrabahtera Segara.
Diversification Opportunities for Bank BRISyariah and Mitrabahtera Segara
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Mitrabahtera is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank BRISyariah Tbk and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara 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 Mitrabahtera Segara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabahtera Segara has no effect on the direction of Bank BRISyariah i.e., Bank BRISyariah and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between Bank BRISyariah and Mitrabahtera Segara
Assuming the 90 days trading horizon Bank BRISyariah Tbk is expected to generate 1.25 times more return on investment than Mitrabahtera Segara. However, Bank BRISyariah is 1.25 times more volatile than Mitrabahtera Segara Sejati. It trades about 0.12 of its potential returns per unit of risk. Mitrabahtera Segara Sejati is currently generating about 0.03 per unit of risk. If you would invest 278,000 in Bank BRISyariah Tbk on November 2, 2024 and sell it today you would earn a total of 10,000 from holding Bank BRISyariah Tbk or generate 3.6% 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. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| Bank BRISyariah Tbk |
| Mitrabahtera Segara |
Bank BRISyariah and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank BRISyariah and Mitrabahtera Segara
The main advantage of trading using opposite Bank BRISyariah and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank BRISyariah position performs unexpectedly, Mitrabahtera Segara 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 Mitrabahtera Segara will offset losses from the drop in Mitrabahtera Segara'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 |
| Mitrabahtera Segara vs. Petrosea Tbk | Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |