Correlation Between Berkah Beton and Bisi International
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and Bisi International 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 Berkah Beton and Bisi International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkah Beton Sadaya and Bisi International Tbk, you can compare the effects of market volatilities on Berkah Beton and Bisi International 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 Berkah Beton with a short position of Bisi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and Bisi International.
Diversification Opportunities for Berkah Beton and Bisi International
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Berkah and Bisi is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and Bisi International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bisi International Tbk and Berkah Beton 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 Berkah Beton Sadaya are associated (or correlated) with Bisi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bisi International Tbk has no effect on the direction of Berkah Beton i.e., Berkah Beton and Bisi International go up and down completely randomly.
Pair Corralation between Berkah Beton and Bisi International
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the Bisi International. In addition to that, Berkah Beton is 3.58 times more volatile than Bisi International Tbk. It trades about -0.09 of its total potential returns per unit of risk. Bisi International Tbk is currently generating about -0.02 per unit of volatility. If you would invest 155,396 in Bisi International Tbk on November 19, 2024 and sell it today you would lose (43,396) from holding Bisi International Tbk or give up 27.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. Bisi International Tbk
Performance |
| Timeline |
| Berkah Beton Sadaya |
| Bisi International Tbk |
Berkah Beton and Bisi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and Bisi International
The main advantage of trading using opposite Berkah Beton and Bisi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, Bisi International 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 Bisi International will offset losses from the drop in Bisi International's long position.| Berkah Beton vs. Bk Harda Internasional | Berkah Beton vs. Bank Net Indonesia | Berkah Beton vs. Bank Yudha Bhakti | Berkah Beton vs. Medikaloka Hermina PT |
| Bisi International vs. Sampoerna Agro Tbk | Bisi International vs. Bakrie Sumatera Plantations | Bisi International vs. Tunas Baru Lampung | Bisi International vs. Darma Henwa 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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