Correlation Between Batulicin Nusantara and Samudera Indonesia
Can any of the company-specific risk be diversified away by investing in both Batulicin Nusantara and Samudera Indonesia 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 Batulicin Nusantara and Samudera Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batulicin Nusantara Maritim and Samudera Indonesia Tbk, you can compare the effects of market volatilities on Batulicin Nusantara and Samudera Indonesia 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 Batulicin Nusantara with a short position of Samudera Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batulicin Nusantara and Samudera Indonesia.
Diversification Opportunities for Batulicin Nusantara and Samudera Indonesia
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Batulicin and Samudera is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Batulicin Nusantara Maritim and Samudera Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samudera Indonesia Tbk and Batulicin Nusantara 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 Batulicin Nusantara Maritim are associated (or correlated) with Samudera Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samudera Indonesia Tbk has no effect on the direction of Batulicin Nusantara i.e., Batulicin Nusantara and Samudera Indonesia go up and down completely randomly.
Pair Corralation between Batulicin Nusantara and Samudera Indonesia
Assuming the 90 days trading horizon Batulicin Nusantara Maritim is expected to generate 2.17 times more return on investment than Samudera Indonesia. However, Batulicin Nusantara is 2.17 times more volatile than Samudera Indonesia Tbk. It trades about 0.25 of its potential returns per unit of risk. Samudera Indonesia Tbk is currently generating about 0.01 per unit of risk. If you would invest 36,200 in Batulicin Nusantara Maritim on October 20, 2024 and sell it today you would earn a total of 5,800 from holding Batulicin Nusantara Maritim or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batulicin Nusantara Maritim vs. Samudera Indonesia Tbk
Performance |
| Timeline |
| Batulicin Nusantara |
| Samudera Indonesia Tbk |
Batulicin Nusantara and Samudera Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batulicin Nusantara and Samudera Indonesia
The main advantage of trading using opposite Batulicin Nusantara and Samudera Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batulicin Nusantara position performs unexpectedly, Samudera Indonesia 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 Samudera Indonesia will offset losses from the drop in Samudera Indonesia's long position.| Batulicin Nusantara vs. PAM Mineral Tbk | Batulicin Nusantara vs. Pelayaran Nelly Dwi | Batulicin Nusantara vs. Bintang Samudera Mandiri | Batulicin Nusantara vs. Trans Power Marine |
| Samudera Indonesia vs. PT Temas Tbk | Samudera Indonesia vs. Petrosea Tbk | Samudera Indonesia vs. Rig Tenders Tbk | Samudera Indonesia vs. Rukun Raharja 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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