Correlation Between Bk Harda and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both Bk Harda 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 Bk Harda and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bk Harda Internasional and Berkah Beton Sadaya, you can compare the effects of market volatilities on Bk Harda 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 Bk Harda with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bk Harda and Berkah Beton.
Diversification Opportunities for Bk Harda and Berkah Beton
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BBHI and Berkah is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bk Harda Internasional 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 Bk Harda 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 Bk Harda Internasional 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 Bk Harda i.e., Bk Harda and Berkah Beton go up and down completely randomly.
Pair Corralation between Bk Harda and Berkah Beton
Assuming the 90 days trading horizon Bk Harda Internasional is expected to under-perform the Berkah Beton. In addition to that, Bk Harda is 1.16 times more volatile than Berkah Beton Sadaya. It trades about -0.03 of its total potential returns per unit of risk. Berkah Beton Sadaya is currently generating about 0.27 per unit of volatility. 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 |
Bk Harda Internasional vs. Berkah Beton Sadaya
Performance |
| Timeline |
| Bk Harda Internasional |
| Berkah Beton Sadaya |
Bk Harda and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bk Harda and Berkah Beton
The main advantage of trading using opposite Bk Harda and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bk Harda 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.| Bk Harda vs. Bank Artos Indonesia | Bk Harda vs. Bank Yudha Bhakti | Bk Harda vs. Bank Ganesha Tbk | Bk Harda 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 CEOs Directory module to screen CEOs from public companies around the world.
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