Correlation Between Apple and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both Apple and Berkah Beton 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 Apple and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Berkah Beton Sadaya, you can compare the effects of market volatilities on Apple and Berkah Beton 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 Apple with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Berkah Beton.
Diversification Opportunities for Apple and Berkah Beton
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Berkah is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Berkah Beton Sadaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkah Beton Sadaya and Apple 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 Apple Inc are associated (or correlated) with Berkah Beton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkah Beton Sadaya has no effect on the direction of Apple i.e., Apple and Berkah Beton go up and down completely randomly.
Pair Corralation between Apple and Berkah Beton
Given the investment horizon of 90 days Apple Inc is expected to generate 0.15 times more return on investment than Berkah Beton. However, Apple Inc is 6.78 times less risky than Berkah Beton. It trades about 0.07 of its potential returns per unit of risk. Berkah Beton Sadaya is currently generating about -0.04 per unit of risk. If you would invest 18,849 in Apple Inc on November 3, 2024 and sell it today you would earn a total of 4,751 from holding Apple Inc or generate 25.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.74% |
| Values | Daily Returns |
Apple Inc vs. Berkah Beton Sadaya
Performance |
| Timeline |
| Apple Inc |
| Berkah Beton Sadaya |
Apple and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Berkah Beton
The main advantage of trading using opposite Apple and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Berkah Beton 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 Berkah Beton will offset losses from the drop in Berkah Beton's long position.The idea behind Apple Inc and Berkah Beton Sadaya 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.| Berkah Beton vs. Bk Harda Internasional | Berkah Beton vs. Bank Net Indonesia | Berkah Beton vs. Bank Yudha Bhakti | Berkah Beton vs. Medikaloka Hermina PT |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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