Correlation Between Berkah Beton and Saraswanti Anugerah
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and Saraswanti Anugerah 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 Saraswanti Anugerah 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 Saraswanti Anugerah Makmur, you can compare the effects of market volatilities on Berkah Beton and Saraswanti Anugerah 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 Saraswanti Anugerah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and Saraswanti Anugerah.
Diversification Opportunities for Berkah Beton and Saraswanti Anugerah
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Berkah and Saraswanti is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and Saraswanti Anugerah Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saraswanti Anugerah 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 Saraswanti Anugerah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saraswanti Anugerah has no effect on the direction of Berkah Beton i.e., Berkah Beton and Saraswanti Anugerah go up and down completely randomly.
Pair Corralation between Berkah Beton and Saraswanti Anugerah
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the Saraswanti Anugerah. In addition to that, Berkah Beton is 5.09 times more volatile than Saraswanti Anugerah Makmur. It trades about -0.05 of its total potential returns per unit of risk. Saraswanti Anugerah Makmur is currently generating about 0.03 per unit of volatility. If you would invest 73,177 in Saraswanti Anugerah Makmur on September 12, 2024 and sell it today you would earn a total of 6,823 from holding Saraswanti Anugerah Makmur or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. Saraswanti Anugerah Makmur
Performance |
| Timeline |
| Berkah Beton Sadaya |
| Saraswanti Anugerah |
Berkah Beton and Saraswanti Anugerah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and Saraswanti Anugerah
The main advantage of trading using opposite Berkah Beton and Saraswanti Anugerah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, Saraswanti Anugerah 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 Saraswanti Anugerah will offset losses from the drop in Saraswanti Anugerah's long position.| Berkah Beton vs. PT Indonesia Kendaraan | Berkah Beton vs. Wijaya Karya Bangunan | Berkah Beton vs. Buyung Poetra Sembada | Berkah Beton vs. J Resources Asia |
| Saraswanti Anugerah vs. Panca Budi Idaman | Saraswanti Anugerah vs. Gunung Raja Paksi | Saraswanti Anugerah vs. Aneka Gas Industri | Saraswanti Anugerah vs. Mark Dynamics Indonesia |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |