Correlation Between Bali Towerindo and Sillo Maritime
Can any of the company-specific risk be diversified away by investing in both Bali Towerindo and Sillo Maritime 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 Bali Towerindo and Sillo Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bali Towerindo Sentra and Sillo Maritime Perdana, you can compare the effects of market volatilities on Bali Towerindo and Sillo Maritime 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 Bali Towerindo with a short position of Sillo Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bali Towerindo and Sillo Maritime.
Diversification Opportunities for Bali Towerindo and Sillo Maritime
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bali and Sillo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bali Towerindo Sentra and Sillo Maritime Perdana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sillo Maritime Perdana and Bali Towerindo 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 Bali Towerindo Sentra are associated (or correlated) with Sillo Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sillo Maritime Perdana has no effect on the direction of Bali Towerindo i.e., Bali Towerindo and Sillo Maritime go up and down completely randomly.
Pair Corralation between Bali Towerindo and Sillo Maritime
Assuming the 90 days trading horizon Bali Towerindo Sentra is expected to generate 1.19 times more return on investment than Sillo Maritime. However, Bali Towerindo is 1.19 times more volatile than Sillo Maritime Perdana. It trades about 0.06 of its potential returns per unit of risk. Sillo Maritime Perdana is currently generating about 0.04 per unit of risk. If you would invest 74,586 in Bali Towerindo Sentra on August 24, 2024 and sell it today you would earn a total of 76,914 from holding Bali Towerindo Sentra or generate 103.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bali Towerindo Sentra vs. Sillo Maritime Perdana
Performance |
| Timeline |
| Bali Towerindo Sentra |
| Sillo Maritime Perdana |
Bali Towerindo and Sillo Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bali Towerindo and Sillo Maritime
The main advantage of trading using opposite Bali Towerindo and Sillo Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bali Towerindo position performs unexpectedly, Sillo Maritime 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 Sillo Maritime will offset losses from the drop in Sillo Maritime's long position.| Bali Towerindo vs. Austindo Nusantara Jaya | Bali Towerindo vs. Inti Bangun Sejahtera | Bali Towerindo vs. Bukaka Teknik Utama | Bali Towerindo vs. Blue Bird Tbk |
| Sillo Maritime vs. Petrosea Tbk | Sillo Maritime vs. Harum Energy Tbk | Sillo Maritime vs. Perdana Karya Perkasa | Sillo Maritime vs. Samindo Resources Tbk |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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