Correlation Between PT Techno9 and Bank BRISyariah
Can any of the company-specific risk be diversified away by investing in both PT Techno9 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 PT Techno9 and Bank BRISyariah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Techno9 Indonesia and Bank BRISyariah Tbk, you can compare the effects of market volatilities on PT Techno9 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 PT Techno9 with a short position of Bank BRISyariah. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and Bank BRISyariah.
Diversification Opportunities for PT Techno9 and Bank BRISyariah
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NINE and Bank is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia 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 PT Techno9 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 PT Techno9 Indonesia 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 PT Techno9 i.e., PT Techno9 and Bank BRISyariah go up and down completely randomly.
Pair Corralation between PT Techno9 and Bank BRISyariah
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 1.1 times more return on investment than Bank BRISyariah. However, PT Techno9 is 1.1 times more volatile than Bank BRISyariah Tbk. It trades about 0.23 of its potential returns per unit of risk. Bank BRISyariah Tbk is currently generating about 0.11 per unit of risk. If you would invest 20,400 in PT Techno9 Indonesia on November 28, 2024 and sell it today you would earn a total of 2,000 from holding PT Techno9 Indonesia or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. Bank BRISyariah Tbk
Performance |
| Timeline |
| PT Techno9 Indonesia |
| Bank BRISyariah Tbk |
PT Techno9 and Bank BRISyariah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and Bank BRISyariah
The main advantage of trading using opposite PT Techno9 and Bank BRISyariah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 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.| PT Techno9 vs. Ace Hardware Indonesia | PT Techno9 vs. Garuda Metalindo Tbk | PT Techno9 vs. Lippo General Insurance | PT Techno9 vs. Pacific Strategic Financial |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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