Correlation Between Bank BRISyariah and Central Proteina
Can any of the company-specific risk be diversified away by investing in both Bank BRISyariah and Central Proteina 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 Central Proteina 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 Central Proteina Prima, you can compare the effects of market volatilities on Bank BRISyariah and Central Proteina 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 Central Proteina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank BRISyariah and Central Proteina.
Diversification Opportunities for Bank BRISyariah and Central Proteina
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Central is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank BRISyariah Tbk and Central Proteina Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Proteina Prima 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 Central Proteina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Proteina Prima has no effect on the direction of Bank BRISyariah i.e., Bank BRISyariah and Central Proteina go up and down completely randomly.
Pair Corralation between Bank BRISyariah and Central Proteina
Assuming the 90 days trading horizon Bank BRISyariah Tbk is expected to under-perform the Central Proteina. In addition to that, Bank BRISyariah is 1.02 times more volatile than Central Proteina Prima. It trades about -0.06 of its total potential returns per unit of risk. Central Proteina Prima is currently generating about 0.01 per unit of volatility. If you would invest 5,000 in Central Proteina Prima on December 30, 2024 and sell it today you would earn a total of 0.00 from holding Central Proteina Prima or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bank BRISyariah Tbk vs. Central Proteina Prima
Performance |
Timeline |
Bank BRISyariah Tbk |
Central Proteina Prima |
Bank BRISyariah and Central Proteina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank BRISyariah and Central Proteina
The main advantage of trading using opposite Bank BRISyariah and Central Proteina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank BRISyariah position performs unexpectedly, Central Proteina 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 Central Proteina will offset losses from the drop in Central Proteina'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 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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