Correlation Between Berkah Beton and PT Harapan
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and PT Harapan 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 PT Harapan 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 PT Harapan Duta, you can compare the effects of market volatilities on Berkah Beton and PT Harapan 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 PT Harapan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and PT Harapan.
Diversification Opportunities for Berkah Beton and PT Harapan
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Berkah and HOPE is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and PT Harapan Duta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Harapan Duta 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 PT Harapan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Harapan Duta has no effect on the direction of Berkah Beton i.e., Berkah Beton and PT Harapan go up and down completely randomly.
Pair Corralation between Berkah Beton and PT Harapan
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the PT Harapan. In addition to that, Berkah Beton is 1.97 times more volatile than PT Harapan Duta. It trades about -0.05 of its total potential returns per unit of risk. PT Harapan Duta is currently generating about -0.01 per unit of volatility. If you would invest 3,600 in PT Harapan Duta on September 1, 2024 and sell it today you would lose (100.00) from holding PT Harapan Duta or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. PT Harapan Duta
Performance |
| Timeline |
| Berkah Beton Sadaya |
| PT Harapan Duta |
Berkah Beton and PT Harapan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and PT Harapan
The main advantage of trading using opposite Berkah Beton and PT Harapan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, PT Harapan 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 PT Harapan will offset losses from the drop in PT Harapan'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 |
| PT Harapan vs. Ladangbaja Murni PT | PT Harapan vs. Berkah Beton Sadaya | PT Harapan vs. Cahayaputra Asa Keramik | PT Harapan vs. Diagnos Laboratorium Utama |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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