Correlation Between Indofarma Tbk and Bank BRISyariah

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Indofarma Tbk 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 Indofarma Tbk and Bank BRISyariah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indofarma Tbk and Bank BRISyariah Tbk, you can compare the effects of market volatilities on Indofarma Tbk 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 Indofarma Tbk with a short position of Bank BRISyariah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofarma Tbk and Bank BRISyariah.

Diversification Opportunities for Indofarma Tbk and Bank BRISyariah

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Indofarma and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indofarma Tbk 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 Indofarma Tbk 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 Indofarma Tbk 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 Indofarma Tbk i.e., Indofarma Tbk and Bank BRISyariah go up and down completely randomly.

Pair Corralation between Indofarma Tbk and Bank BRISyariah

If you would invest  285,000  in Bank BRISyariah Tbk on September 17, 2024 and sell it today you would earn a total of  3,000  from holding Bank BRISyariah Tbk or generate 1.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Indofarma Tbk  vs.  Bank BRISyariah Tbk

 Performance 
       Timeline  
Indofarma Tbk 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Indofarma Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Indofarma Tbk is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
Bank BRISyariah Tbk 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bank BRISyariah Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Bank BRISyariah is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Indofarma Tbk and Bank BRISyariah Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Indofarma Tbk and Bank BRISyariah

The main advantage of trading using opposite Indofarma Tbk and Bank BRISyariah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofarma Tbk 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.
The idea behind Indofarma Tbk and Bank BRISyariah Tbk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities