Correlation Between Argha Karya and Berlina Tbk
Can any of the company-specific risk be diversified away by investing in both Argha Karya and Berlina Tbk 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 Argha Karya and Berlina Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argha Karya Prima and Berlina Tbk, you can compare the effects of market volatilities on Argha Karya and Berlina Tbk 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 Argha Karya with a short position of Berlina Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argha Karya and Berlina Tbk.
Diversification Opportunities for Argha Karya and Berlina Tbk
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Argha and Berlina is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Argha Karya Prima and Berlina Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berlina Tbk and Argha Karya 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 Argha Karya Prima are associated (or correlated) with Berlina Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berlina Tbk has no effect on the direction of Argha Karya i.e., Argha Karya and Berlina Tbk go up and down completely randomly.
Pair Corralation between Argha Karya and Berlina Tbk
Assuming the 90 days trading horizon Argha Karya Prima is expected to generate 1.92 times more return on investment than Berlina Tbk. However, Argha Karya is 1.92 times more volatile than Berlina Tbk. It trades about -0.01 of its potential returns per unit of risk. Berlina Tbk is currently generating about -0.12 per unit of risk. If you would invest 65,500 in Argha Karya Prima on August 29, 2024 and sell it today you would lose (5,000) from holding Argha Karya Prima or give up 7.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argha Karya Prima vs. Berlina Tbk
Performance |
| Timeline |
| Argha Karya Prima |
| Berlina Tbk |
Argha Karya and Berlina Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argha Karya and Berlina Tbk
The main advantage of trading using opposite Argha Karya and Berlina Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argha Karya position performs unexpectedly, Berlina Tbk 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 Berlina Tbk will offset losses from the drop in Berlina Tbk's long position.| Argha Karya vs. Asiaplast Industries Tbk | Argha Karya vs. Alumindo Light Metal | Argha Karya vs. Berlina Tbk | Argha Karya vs. Anugerah Kagum Karya |
| Berlina Tbk vs. Argha Karya Prima | Berlina Tbk vs. Asiaplast Industries Tbk | Berlina Tbk vs. Betonjaya Manunggal Tbk | Berlina Tbk vs. Champion Pacific Indonesia |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |