Correlation Between Berkah Beton and Buyung Poetra
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and Buyung Poetra 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 Buyung Poetra 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 Buyung Poetra Sembada, you can compare the effects of market volatilities on Berkah Beton and Buyung Poetra 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 Buyung Poetra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and Buyung Poetra.
Diversification Opportunities for Berkah Beton and Buyung Poetra
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Berkah and Buyung is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and Buyung Poetra Sembada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buyung Poetra Sembada 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 Buyung Poetra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buyung Poetra Sembada has no effect on the direction of Berkah Beton i.e., Berkah Beton and Buyung Poetra go up and down completely randomly.
Pair Corralation between Berkah Beton and Buyung Poetra
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the Buyung Poetra. In addition to that, Berkah Beton is 2.03 times more volatile than Buyung Poetra Sembada. It trades about -0.03 of its total potential returns per unit of risk. Buyung Poetra Sembada is currently generating about 0.09 per unit of volatility. If you would invest 11,500 in Buyung Poetra Sembada on August 29, 2024 and sell it today you would earn a total of 900.00 from holding Buyung Poetra Sembada or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. Buyung Poetra Sembada
Performance |
| Timeline |
| Berkah Beton Sadaya |
| Buyung Poetra Sembada |
Berkah Beton and Buyung Poetra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and Buyung Poetra
The main advantage of trading using opposite Berkah Beton and Buyung Poetra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, Buyung Poetra 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 Buyung Poetra will offset losses from the drop in Buyung Poetra'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 |
| Buyung Poetra vs. Integra Indocabinet Tbk | Buyung Poetra vs. Sariguna Primatirta PT | Buyung Poetra vs. Erajaya Swasembada Tbk | Buyung Poetra vs. Puradelta Lestari 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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