Correlation Between Bhakti Multi and Sarana Meditama
Can any of the company-specific risk be diversified away by investing in both Bhakti Multi and Sarana Meditama 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 Sarana Meditama 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 Sarana Meditama Metropolitan, you can compare the effects of market volatilities on Bhakti Multi and Sarana Meditama 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 Sarana Meditama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhakti Multi and Sarana Meditama.
Diversification Opportunities for Bhakti Multi and Sarana Meditama
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bhakti and Sarana is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bhakti Multi Artha and Sarana Meditama Metropolitan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarana Meditama Metr 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 Sarana Meditama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarana Meditama Metr has no effect on the direction of Bhakti Multi i.e., Bhakti Multi and Sarana Meditama go up and down completely randomly.
Pair Corralation between Bhakti Multi and Sarana Meditama
Assuming the 90 days trading horizon Bhakti Multi Artha is expected to under-perform the Sarana Meditama. But the stock apears to be less risky and, when comparing its historical volatility, Bhakti Multi Artha is 1.35 times less risky than Sarana Meditama. The stock trades about -0.05 of its potential returns per unit of risk. The Sarana Meditama Metropolitan is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 30,200 in Sarana Meditama Metropolitan on August 29, 2024 and sell it today you would lose (5,200) from holding Sarana Meditama Metropolitan or give up 17.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bhakti Multi Artha vs. Sarana Meditama Metropolitan
Performance |
| Timeline |
| Bhakti Multi Artha |
| Sarana Meditama Metr |
Bhakti Multi and Sarana Meditama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bhakti Multi and Sarana Meditama
The main advantage of trading using opposite Bhakti Multi and Sarana Meditama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bhakti Multi position performs unexpectedly, Sarana Meditama 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 Sarana Meditama will offset losses from the drop in Sarana Meditama'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 |
| Sarana Meditama vs. Siloam International Hospitals | Sarana Meditama vs. Mitra Keluarga Karyasehat | Sarana Meditama vs. Adi Sarana Armada | Sarana Meditama vs. Elang Mahkota Teknologi |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |