Correlation Between Indofarma Tbk and Bank BRISyariah
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 Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
Indofarma Tbk vs. Bank BRISyariah Tbk
Performance |
Timeline |
Indofarma Tbk |
Bank BRISyariah Tbk |
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.Indofarma Tbk vs. Envy Technologies Indonesia | Indofarma Tbk vs. Visi Media Asia | Indofarma Tbk vs. Media Nusantara Citra | Indofarma Tbk vs. Mahaka Media 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 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 |