Correlation Between Bk Harda and HK Metals
Can any of the company-specific risk be diversified away by investing in both Bk Harda and HK Metals 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 HK Metals 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 HK Metals Utama, you can compare the effects of market volatilities on Bk Harda and HK Metals 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 HK Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bk Harda and HK Metals.
Diversification Opportunities for Bk Harda and HK Metals
Pay attention - limited upside
The 3 months correlation between BBHI and HKMU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bk Harda Internasional and HK Metals Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Metals Utama 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 HK Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Metals Utama has no effect on the direction of Bk Harda i.e., Bk Harda and HK Metals go up and down completely randomly.
Pair Corralation between Bk Harda and HK Metals
If you would invest 5,000 in HK Metals Utama on August 27, 2024 and sell it today you would earn a total of 0.00 from holding HK Metals Utama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bk Harda Internasional vs. HK Metals Utama
Performance |
| Timeline |
| Bk Harda Internasional |
| HK Metals Utama |
Bk Harda and HK Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bk Harda and HK Metals
The main advantage of trading using opposite Bk Harda and HK Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bk Harda position performs unexpectedly, HK Metals 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 HK Metals will offset losses from the drop in HK Metals' long position.| Bk Harda vs. Paninvest Tbk | Bk Harda vs. Wahana Ottomitra Multiartha | Bk Harda vs. Lenox Pasifik Investama |
| HK Metals vs. Bk Harda Internasional | HK Metals vs. Bank Net Indonesia | HK Metals vs. Bank Yudha Bhakti | HK Metals 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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