Correlation Between Berkah Beton and Sariguna Primatirta
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and Sariguna Primatirta 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 Sariguna Primatirta 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 Sariguna Primatirta PT, you can compare the effects of market volatilities on Berkah Beton and Sariguna Primatirta 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 Sariguna Primatirta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and Sariguna Primatirta.
Diversification Opportunities for Berkah Beton and Sariguna Primatirta
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkah and Sariguna is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and Sariguna Primatirta PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sariguna Primatirta 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 Sariguna Primatirta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sariguna Primatirta has no effect on the direction of Berkah Beton i.e., Berkah Beton and Sariguna Primatirta go up and down completely randomly.
Pair Corralation between Berkah Beton and Sariguna Primatirta
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the Sariguna Primatirta. In addition to that, Berkah Beton is 8.59 times more volatile than Sariguna Primatirta PT. It trades about -0.03 of its total potential returns per unit of risk. Sariguna Primatirta PT is currently generating about -0.18 per unit of volatility. If you would invest 129,000 in Sariguna Primatirta PT on August 28, 2024 and sell it today you would lose (6,500) from holding Sariguna Primatirta PT or give up 5.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. Sariguna Primatirta PT
Performance |
| Timeline |
| Berkah Beton Sadaya |
| Sariguna Primatirta |
Berkah Beton and Sariguna Primatirta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and Sariguna Primatirta
The main advantage of trading using opposite Berkah Beton and Sariguna Primatirta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, Sariguna Primatirta 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 Sariguna Primatirta will offset losses from the drop in Sariguna Primatirta's long position.| Berkah Beton vs. Bk Harda Internasional | Berkah Beton vs. Bank Yudha Bhakti | Berkah Beton vs. Medikaloka Hermina PT | Berkah Beton vs. Elang Mahkota Teknologi |
| Sariguna Primatirta vs. Buyung Poetra Sembada | Sariguna Primatirta vs. Sido Muncul PT | Sariguna Primatirta vs. Mayora Indah Tbk | Sariguna Primatirta vs. Bank Tabungan Pensiunan |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |