Correlation Between Bank Net and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both Bank Net 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 Bank Net and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Net Indonesia and Berkah Beton Sadaya, you can compare the effects of market volatilities on Bank Net 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 Bank Net with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Net and Berkah Beton.
Diversification Opportunities for Bank Net and Berkah Beton
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Berkah is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bank Net Indonesia 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 Bank Net 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 Bank Net Indonesia 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 Bank Net i.e., Bank Net and Berkah Beton go up and down completely randomly.
Pair Corralation between Bank Net and Berkah Beton
Assuming the 90 days trading horizon Bank Net Indonesia is expected to under-perform the Berkah Beton. But the stock apears to be less risky and, when comparing its historical volatility, Bank Net Indonesia is 12.98 times less risky than Berkah Beton. The stock trades about -0.27 of its potential returns per unit of risk. The Berkah Beton Sadaya is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 500.00 in Berkah Beton Sadaya on October 23, 2024 and sell it today you would earn a total of 200.00 from holding Berkah Beton Sadaya or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Net Indonesia vs. Berkah Beton Sadaya
Performance |
| Timeline |
| Bank Net Indonesia |
| Berkah Beton Sadaya |
Bank Net and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Net and Berkah Beton
The main advantage of trading using opposite Bank Net and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Net 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.| Bank Net vs. Bank Artos Indonesia | Bank Net vs. Bank Yudha Bhakti | Bank Net vs. Bk Harda Internasional | Bank Net vs. Bank Rakyat Indonesia |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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