Correlation Between Berkah Beton and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and Japfa Comfeed 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 Japfa Comfeed 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 Japfa Comfeed Indonesia, you can compare the effects of market volatilities on Berkah Beton and Japfa Comfeed 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 Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and Japfa Comfeed.
Diversification Opportunities for Berkah Beton and Japfa Comfeed
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Berkah and Japfa is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and Japfa Comfeed Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japfa Comfeed Indonesia 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 Japfa Comfeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japfa Comfeed Indonesia has no effect on the direction of Berkah Beton i.e., Berkah Beton and Japfa Comfeed go up and down completely randomly.
Pair Corralation between Berkah Beton and Japfa Comfeed
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the Japfa Comfeed. In addition to that, Berkah Beton is 3.52 times more volatile than Japfa Comfeed Indonesia. It trades about -0.09 of its total potential returns per unit of risk. Japfa Comfeed Indonesia is currently generating about 0.06 per unit of volatility. If you would invest 122,760 in Japfa Comfeed Indonesia on November 19, 2024 and sell it today you would earn a total of 74,740 from holding Japfa Comfeed Indonesia or generate 60.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.15% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| Berkah Beton Sadaya |
| Japfa Comfeed Indonesia |
Berkah Beton and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and Japfa Comfeed
The main advantage of trading using opposite Berkah Beton and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, Japfa Comfeed 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 Japfa Comfeed will offset losses from the drop in Japfa Comfeed'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 |
| Japfa Comfeed vs. Charoen Pokphand Indonesia | Japfa Comfeed vs. Kalbe Farma Tbk | Japfa Comfeed vs. Indofood Cbp Sukses | Japfa Comfeed vs. PT Indofood Sukses |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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