Correlation Between Bali Towerindo and Solusi Tunas
Can any of the company-specific risk be diversified away by investing in both Bali Towerindo and Solusi Tunas 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 Solusi Tunas 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 Solusi Tunas Pratama, you can compare the effects of market volatilities on Bali Towerindo and Solusi Tunas 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 Solusi Tunas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bali Towerindo and Solusi Tunas.
Diversification Opportunities for Bali Towerindo and Solusi Tunas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bali and Solusi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bali Towerindo Sentra and Solusi Tunas Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solusi Tunas Pratama 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 Solusi Tunas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solusi Tunas Pratama has no effect on the direction of Bali Towerindo i.e., Bali Towerindo and Solusi Tunas go up and down completely randomly.
Pair Corralation between Bali Towerindo and Solusi Tunas
Assuming the 90 days trading horizon Bali Towerindo Sentra is expected to generate 3.57 times more return on investment than Solusi Tunas. However, Bali Towerindo is 3.57 times more volatile than Solusi Tunas Pratama. It trades about 0.05 of its potential returns per unit of risk. Solusi Tunas Pratama is currently generating about 0.04 per unit of risk. If you would invest 75,524 in Bali Towerindo Sentra on September 4, 2024 and sell it today you would earn a total of 54,476 from holding Bali Towerindo Sentra or generate 72.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bali Towerindo Sentra vs. Solusi Tunas Pratama
Performance |
| Timeline |
| Bali Towerindo Sentra |
| Solusi Tunas Pratama |
Bali Towerindo and Solusi Tunas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bali Towerindo and Solusi Tunas
The main advantage of trading using opposite Bali Towerindo and Solusi Tunas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bali Towerindo position performs unexpectedly, Solusi Tunas 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 Solusi Tunas will offset losses from the drop in Solusi Tunas' long position.| Bali Towerindo vs. Energi Mega Persada | Bali Towerindo vs. Mitra Pinasthika Mustika | Bali Towerindo vs. Jakarta Int Hotels | Bali Towerindo vs. Indosat Tbk |
| Solusi Tunas vs. Inti Bangun Sejahtera | Solusi Tunas vs. Tower Bersama Infrastructure | Solusi Tunas vs. Bali Towerindo Sentra | Solusi Tunas vs. Siantar Top 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |