Correlation Between Batulicin Nusantara and Soechi Lines
Can any of the company-specific risk be diversified away by investing in both Batulicin Nusantara and Soechi Lines 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 Soechi Lines 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 Soechi Lines Tbk, you can compare the effects of market volatilities on Batulicin Nusantara and Soechi Lines 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 Soechi Lines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batulicin Nusantara and Soechi Lines.
Diversification Opportunities for Batulicin Nusantara and Soechi Lines
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Batulicin and Soechi is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Batulicin Nusantara Maritim and Soechi Lines Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soechi Lines 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 Soechi Lines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soechi Lines Tbk has no effect on the direction of Batulicin Nusantara i.e., Batulicin Nusantara and Soechi Lines go up and down completely randomly.
Pair Corralation between Batulicin Nusantara and Soechi Lines
Assuming the 90 days trading horizon Batulicin Nusantara Maritim is expected to generate 2.87 times more return on investment than Soechi Lines. However, Batulicin Nusantara is 2.87 times more volatile than Soechi Lines Tbk. It trades about 0.2 of its potential returns per unit of risk. Soechi Lines Tbk is currently generating about -0.07 per unit of risk. If you would invest 17,800 in Batulicin Nusantara Maritim on November 2, 2024 and sell it today you would earn a total of 21,200 from holding Batulicin Nusantara Maritim or generate 119.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Batulicin Nusantara Maritim vs. Soechi Lines Tbk
Performance |
| Timeline |
| Batulicin Nusantara |
| Soechi Lines Tbk |
Batulicin Nusantara and Soechi Lines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batulicin Nusantara and Soechi Lines
The main advantage of trading using opposite Batulicin Nusantara and Soechi Lines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batulicin Nusantara position performs unexpectedly, Soechi Lines 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 Soechi Lines will offset losses from the drop in Soechi Lines' long position.| Batulicin Nusantara vs. PT Dewi Shri | Batulicin Nusantara vs. Habco Trans Maritima | Batulicin Nusantara vs. PT Hasnur Internasional | Batulicin Nusantara vs. PT Toba Surimi |
| Soechi Lines vs. Samudera Indonesia Tbk | Soechi Lines vs. Buana Listya Tama | Soechi Lines vs. Mitrabahtera Segara Sejati | Soechi Lines vs. Bekasi Fajar Industrial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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