Correlation Between Bank BRISyariah and Mayora Indah
Can any of the company-specific risk be diversified away by investing in both Bank BRISyariah and Mayora Indah 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 Mayora Indah 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 Mayora Indah Tbk, you can compare the effects of market volatilities on Bank BRISyariah and Mayora Indah 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 Mayora Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank BRISyariah and Mayora Indah.
Diversification Opportunities for Bank BRISyariah and Mayora Indah
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Mayora is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank BRISyariah Tbk and Mayora Indah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayora Indah Tbk 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 Mayora Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayora Indah Tbk has no effect on the direction of Bank BRISyariah i.e., Bank BRISyariah and Mayora Indah go up and down completely randomly.
Pair Corralation between Bank BRISyariah and Mayora Indah
Assuming the 90 days trading horizon Bank BRISyariah Tbk is expected to generate 1.3 times more return on investment than Mayora Indah. However, Bank BRISyariah is 1.3 times more volatile than Mayora Indah Tbk. It trades about 0.07 of its potential returns per unit of risk. Mayora Indah Tbk is currently generating about -0.01 per unit of risk. If you would invest 153,371 in Bank BRISyariah Tbk on November 27, 2024 and sell it today you would earn a total of 153,629 from holding Bank BRISyariah Tbk or generate 100.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bank BRISyariah Tbk vs. Mayora Indah Tbk
Performance |
| Timeline |
| Bank BRISyariah Tbk |
| Mayora Indah Tbk |
Bank BRISyariah and Mayora Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank BRISyariah and Mayora Indah
The main advantage of trading using opposite Bank BRISyariah and Mayora Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank BRISyariah position performs unexpectedly, Mayora Indah 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 Mayora Indah will offset losses from the drop in Mayora Indah'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 |
| Mayora Indah vs. Indofood Cbp Sukses | Mayora Indah vs. Kalbe Farma Tbk | Mayora Indah vs. Unilever Indonesia Tbk | Mayora Indah vs. Ultra Jaya Milk |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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