Correlation Between Bhakti Multi and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both Bhakti Multi and Bintang Oto 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 Bhakti Multi and Bintang Oto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bhakti Multi Artha and Bintang Oto Global, you can compare the effects of market volatilities on Bhakti Multi and Bintang Oto 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 Bhakti Multi with a short position of Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhakti Multi and Bintang Oto.
Diversification Opportunities for Bhakti Multi and Bintang Oto
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bhakti and Bintang is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bhakti Multi Artha and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global and Bhakti Multi 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 Bhakti Multi Artha are associated (or correlated) with Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of Bhakti Multi i.e., Bhakti Multi and Bintang Oto go up and down completely randomly.
Pair Corralation between Bhakti Multi and Bintang Oto
Assuming the 90 days trading horizon Bhakti Multi Artha is expected to under-perform the Bintang Oto. In addition to that, Bhakti Multi is 1.69 times more volatile than Bintang Oto Global. It trades about -0.35 of its total potential returns per unit of risk. Bintang Oto Global is currently generating about -0.45 per unit of volatility. If you would invest 59,500 in Bintang Oto Global on August 28, 2024 and sell it today you would lose (6,500) from holding Bintang Oto Global or give up 10.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bhakti Multi Artha vs. Bintang Oto Global
Performance |
| Timeline |
| Bhakti Multi Artha |
| Bintang Oto Global |
Bhakti Multi and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bhakti Multi and Bintang Oto
The main advantage of trading using opposite Bhakti Multi and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bhakti Multi position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto's long position.| Bhakti Multi vs. Metro Healthcare Indonesia | Bhakti Multi vs. Bintang Oto Global | Bhakti Multi vs. Surya Permata Andalan | Bhakti Multi vs. Capital Financial Indonesia |
| Bintang Oto vs. Surya Permata Andalan | Bintang Oto vs. Aneka Gas Industri | Bintang Oto vs. Buana Listya Tama | Bintang Oto vs. Trisula Textile Industries |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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