Correlation Between Sinar Mas and Bank BRISyariah
Can any of the company-specific risk be diversified away by investing in both Sinar Mas 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 Sinar Mas and Bank BRISyariah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinar Mas Agro and Bank BRISyariah Tbk, you can compare the effects of market volatilities on Sinar Mas 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 Sinar Mas with a short position of Bank BRISyariah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinar Mas and Bank BRISyariah.
Diversification Opportunities for Sinar Mas and Bank BRISyariah
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sinar and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sinar Mas 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 Sinar Mas 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 Sinar Mas 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 Sinar Mas i.e., Sinar Mas and Bank BRISyariah go up and down completely randomly.
Pair Corralation between Sinar Mas and Bank BRISyariah
Assuming the 90 days trading horizon Sinar Mas is expected to generate 11.87 times less return on investment than Bank BRISyariah. But when comparing it to its historical volatility, Sinar Mas Agro is 1.75 times less risky than Bank BRISyariah. It trades about 0.01 of its potential returns per unit of risk. Bank BRISyariah Tbk is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 167,079 in Bank BRISyariah Tbk on September 3, 2024 and sell it today you would earn a total of 116,921 from holding Bank BRISyariah Tbk or generate 69.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinar Mas Agro vs. Bank BRISyariah Tbk
Performance |
| Timeline |
| Sinar Mas Agro |
| Bank BRISyariah Tbk |
Sinar Mas and Bank BRISyariah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinar Mas and Bank BRISyariah
The main advantage of trading using opposite Sinar Mas and Bank BRISyariah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinar Mas 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.| Sinar Mas vs. Sampoerna Agro Tbk | Sinar Mas vs. Tunas Baru Lampung | Sinar Mas vs. Perusahaan Perkebunan London | Sinar Mas vs. Bakrie Sumatera Plantations |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |