Correlation Between Batulicin Nusantara and Trisula International
Can any of the company-specific risk be diversified away by investing in both Batulicin Nusantara and Trisula International 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 Trisula International 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 Trisula International Tbk, you can compare the effects of market volatilities on Batulicin Nusantara and Trisula International 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 Trisula International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batulicin Nusantara and Trisula International.
Diversification Opportunities for Batulicin Nusantara and Trisula International
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Batulicin and Trisula is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Batulicin Nusantara Maritim and Trisula International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisula International 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 Trisula International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisula International Tbk has no effect on the direction of Batulicin Nusantara i.e., Batulicin Nusantara and Trisula International go up and down completely randomly.
Pair Corralation between Batulicin Nusantara and Trisula International
Assuming the 90 days trading horizon Batulicin Nusantara Maritim is expected to generate 0.83 times more return on investment than Trisula International. However, Batulicin Nusantara Maritim is 1.2 times less risky than Trisula International. It trades about 0.07 of its potential returns per unit of risk. Trisula International Tbk is currently generating about 0.01 per unit of risk. If you would invest 16,900 in Batulicin Nusantara Maritim on November 2, 2024 and sell it today you would earn a total of 22,100 from holding Batulicin Nusantara Maritim or generate 130.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Batulicin Nusantara Maritim vs. Trisula International Tbk
Performance |
| Timeline |
| Batulicin Nusantara |
| Trisula International Tbk |
Batulicin Nusantara and Trisula International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batulicin Nusantara and Trisula International
The main advantage of trading using opposite Batulicin Nusantara and Trisula International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batulicin Nusantara position performs unexpectedly, Trisula International 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 Trisula International will offset losses from the drop in Trisula International's long position.| Batulicin Nusantara vs. Pelita Samudera Shipping | Batulicin Nusantara vs. Transcoal Pacific Tbk | Batulicin Nusantara vs. Bhakti Multi Artha | Batulicin Nusantara vs. Makmur Berkah Amanda |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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