Correlation Between Armidian Karyatama and Bima Sakti
Can any of the company-specific risk be diversified away by investing in both Armidian Karyatama and Bima Sakti 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 Armidian Karyatama and Bima Sakti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armidian Karyatama Tbk and Bima Sakti Pertiwi, you can compare the effects of market volatilities on Armidian Karyatama and Bima Sakti 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 Armidian Karyatama with a short position of Bima Sakti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armidian Karyatama and Bima Sakti.
Diversification Opportunities for Armidian Karyatama and Bima Sakti
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armidian and Bima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armidian Karyatama Tbk and Bima Sakti Pertiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bima Sakti Pertiwi and Armidian Karyatama 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 Armidian Karyatama Tbk are associated (or correlated) with Bima Sakti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bima Sakti Pertiwi has no effect on the direction of Armidian Karyatama i.e., Armidian Karyatama and Bima Sakti go up and down completely randomly.
Pair Corralation between Armidian Karyatama and Bima Sakti
If you would invest 6,900 in Bima Sakti Pertiwi on September 12, 2024 and sell it today you would lose (1,800) from holding Bima Sakti Pertiwi or give up 26.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armidian Karyatama Tbk vs. Bima Sakti Pertiwi
Performance |
| Timeline |
| Armidian Karyatama Tbk |
| Bima Sakti Pertiwi |
Armidian Karyatama and Bima Sakti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armidian Karyatama and Bima Sakti
The main advantage of trading using opposite Armidian Karyatama and Bima Sakti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armidian Karyatama position performs unexpectedly, Bima Sakti 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 Bima Sakti will offset losses from the drop in Bima Sakti's long position.| Armidian Karyatama vs. Ashmore Asset Management | Armidian Karyatama vs. PT UBC Medical | Armidian Karyatama vs. Wintermar Offshore Marine | Armidian Karyatama vs. Kedawung Setia Industrial |
| Bima Sakti vs. Optima Prima Metal | Bima Sakti vs. Lion Metal Works | Bima Sakti vs. Lotte Chemical Titan | Bima Sakti vs. Humpuss Intermoda Transportasi |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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