Correlation Between Berkah Beton and Elang Mahkota
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and Elang Mahkota 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 Elang Mahkota 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 Elang Mahkota Teknologi, you can compare the effects of market volatilities on Berkah Beton and Elang Mahkota 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 Elang Mahkota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and Elang Mahkota.
Diversification Opportunities for Berkah Beton and Elang Mahkota
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Berkah and Elang is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and Elang Mahkota Teknologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elang Mahkota Teknologi 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 Elang Mahkota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elang Mahkota Teknologi has no effect on the direction of Berkah Beton i.e., Berkah Beton and Elang Mahkota go up and down completely randomly.
Pair Corralation between Berkah Beton and Elang Mahkota
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the Elang Mahkota. In addition to that, Berkah Beton is 3.03 times more volatile than Elang Mahkota Teknologi. It trades about -0.05 of its total potential returns per unit of risk. Elang Mahkota Teknologi is currently generating about -0.06 per unit of volatility. If you would invest 51,000 in Elang Mahkota Teknologi on September 1, 2024 and sell it today you would lose (2,400) from holding Elang Mahkota Teknologi or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. Elang Mahkota Teknologi
Performance |
| Timeline |
| Berkah Beton Sadaya |
| Elang Mahkota Teknologi |
Berkah Beton and Elang Mahkota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and Elang Mahkota
The main advantage of trading using opposite Berkah Beton and Elang Mahkota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, Elang Mahkota 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 Elang Mahkota will offset losses from the drop in Elang Mahkota'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 |
| Elang Mahkota vs. Bank Artos Indonesia | Elang Mahkota vs. PT Bukalapak | Elang Mahkota vs. Sumber Alfaria Trijaya | Elang Mahkota vs. Merdeka Copper Gold |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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