Correlation Between Berkah Beton and Indointernet Tbk
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and Indointernet Tbk 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 Indointernet Tbk 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 Indointernet Tbk PT, you can compare the effects of market volatilities on Berkah Beton and Indointernet Tbk 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 Indointernet Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and Indointernet Tbk.
Diversification Opportunities for Berkah Beton and Indointernet Tbk
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Berkah and Indointernet is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and Indointernet Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indointernet 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 Indointernet Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indointernet Tbk has no effect on the direction of Berkah Beton i.e., Berkah Beton and Indointernet Tbk go up and down completely randomly.
Pair Corralation between Berkah Beton and Indointernet Tbk
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the Indointernet Tbk. In addition to that, Berkah Beton is 6.26 times more volatile than Indointernet Tbk PT. It trades about -0.05 of its total potential returns per unit of risk. Indointernet Tbk PT is currently generating about -0.28 per unit of volatility. If you would invest 433,000 in Indointernet Tbk PT on September 1, 2024 and sell it today you would lose (36,000) from holding Indointernet Tbk PT or give up 8.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. Indointernet Tbk PT
Performance |
| Timeline |
| Berkah Beton Sadaya |
| Indointernet Tbk |
Berkah Beton and Indointernet Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and Indointernet Tbk
The main advantage of trading using opposite Berkah Beton and Indointernet Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, Indointernet Tbk 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 Indointernet Tbk will offset losses from the drop in Indointernet Tbk's long position.| Berkah Beton vs. PT Indonesia Kendaraan | Berkah Beton vs. Wijaya Karya Bangunan | Berkah Beton vs. J Resources Asia | Berkah Beton vs. Steel Pipe Industry |
| Indointernet Tbk vs. DCI Indonesia Tbk | Indointernet Tbk vs. Digital Mediatama Maxima | Indointernet Tbk vs. Multipolar Technology Tbk | Indointernet Tbk vs. Bank Net Indonesia |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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