Correlation Between Berkah Beton and Imago Mulia
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and Imago Mulia 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 Imago Mulia 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 Imago Mulia Persada, you can compare the effects of market volatilities on Berkah Beton and Imago Mulia 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 Imago Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and Imago Mulia.
Diversification Opportunities for Berkah Beton and Imago Mulia
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Berkah and Imago is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and Imago Mulia Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imago Mulia Persada 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 Imago Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imago Mulia Persada has no effect on the direction of Berkah Beton i.e., Berkah Beton and Imago Mulia go up and down completely randomly.
Pair Corralation between Berkah Beton and Imago Mulia
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the Imago Mulia. In addition to that, Berkah Beton is 1.91 times more volatile than Imago Mulia Persada. It trades about -0.05 of its total potential returns per unit of risk. Imago Mulia Persada is currently generating about -0.07 per unit of volatility. If you would invest 9,100 in Imago Mulia Persada on September 1, 2024 and sell it today you would lose (800.00) from holding Imago Mulia Persada or give up 8.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. Imago Mulia Persada
Performance |
| Timeline |
| Berkah Beton Sadaya |
| Imago Mulia Persada |
Berkah Beton and Imago Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and Imago Mulia
The main advantage of trading using opposite Berkah Beton and Imago Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, Imago Mulia 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 Imago Mulia will offset losses from the drop in Imago Mulia'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 |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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