Correlation Between Fks Multi and Bank BRISyariah
Can any of the company-specific risk be diversified away by investing in both Fks Multi and Bank BRISyariah 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 Fks Multi and Bank BRISyariah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fks Multi Agro and Bank BRISyariah Tbk, you can compare the effects of market volatilities on Fks Multi and Bank BRISyariah 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 Fks Multi with a short position of Bank BRISyariah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fks Multi and Bank BRISyariah.
Diversification Opportunities for Fks Multi and Bank BRISyariah
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fks and Bank is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fks Multi Agro and Bank BRISyariah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank BRISyariah Tbk and Fks Multi 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 Fks Multi Agro are associated (or correlated) with Bank BRISyariah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank BRISyariah Tbk has no effect on the direction of Fks Multi i.e., Fks Multi and Bank BRISyariah go up and down completely randomly.
Pair Corralation between Fks Multi and Bank BRISyariah
Assuming the 90 days trading horizon Fks Multi Agro is expected to generate 0.06 times more return on investment than Bank BRISyariah. However, Fks Multi Agro is 17.18 times less risky than Bank BRISyariah. It trades about -0.51 of its potential returns per unit of risk. Bank BRISyariah Tbk is currently generating about -0.07 per unit of risk. If you would invest 1,100,000 in Fks Multi Agro on September 1, 2024 and sell it today you would lose (17,500) from holding Fks Multi Agro or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fks Multi Agro vs. Bank BRISyariah Tbk
Performance |
| Timeline |
| Fks Multi Agro |
| Bank BRISyariah Tbk |
Fks Multi and Bank BRISyariah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fks Multi and Bank BRISyariah
The main advantage of trading using opposite Fks Multi and Bank BRISyariah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fks Multi position performs unexpectedly, Bank BRISyariah 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 Bank BRISyariah will offset losses from the drop in Bank BRISyariah's long position.| Fks Multi vs. Bank BRISyariah Tbk | Fks Multi vs. Mitra Pinasthika Mustika | Fks Multi vs. Jakarta Int Hotels | Fks Multi vs. Indosterling Technomedia Tbk |
| Bank BRISyariah vs. Aneka Tambang Persero | Bank BRISyariah vs. Sido Muncul PT | Bank BRISyariah vs. Indofood Cbp Sukses | Bank BRISyariah vs. Bank Tabungan Pensiunan |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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