Correlation Between Berkah Beton and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Berkah Beton and PT Sunter 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 Sunter 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 Sunter Lakeside, you can compare the effects of market volatilities on Berkah Beton and PT Sunter 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 Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Beton and PT Sunter.
Diversification Opportunities for Berkah Beton and PT Sunter
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berkah and SNLK is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Beton Sadaya and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside 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 Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Berkah Beton i.e., Berkah Beton and PT Sunter go up and down completely randomly.
Pair Corralation between Berkah Beton and PT Sunter
Assuming the 90 days trading horizon Berkah Beton Sadaya is expected to under-perform the PT Sunter. In addition to that, Berkah Beton is 4.63 times more volatile than PT Sunter Lakeside. It trades about -0.03 of its total potential returns per unit of risk. PT Sunter Lakeside is currently generating about -0.09 per unit of volatility. If you would invest 75,000 in PT Sunter Lakeside on August 28, 2024 and sell it today you would lose (6,500) from holding PT Sunter Lakeside or give up 8.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkah Beton Sadaya vs. PT Sunter Lakeside
Performance |
| Timeline |
| Berkah Beton Sadaya |
| PT Sunter Lakeside |
Berkah Beton and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Beton and PT Sunter
The main advantage of trading using opposite Berkah Beton and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Beton position performs unexpectedly, PT Sunter 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 Sunter will offset losses from the drop in PT Sunter'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 |
| PT Sunter vs. Gaya Abadi Sempurna | PT Sunter vs. Damai Sejahtera Abadi | PT Sunter vs. Red Planet Indonesia | PT Sunter vs. PAM Mineral Tbk |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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