Correlation Between Sepeda Bersama and Bali Bintang
Can any of the company-specific risk be diversified away by investing in both Sepeda Bersama and Bali Bintang 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 Sepeda Bersama and Bali Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sepeda Bersama Indonesia and Bali Bintang Sejahtera, you can compare the effects of market volatilities on Sepeda Bersama and Bali Bintang 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 Sepeda Bersama with a short position of Bali Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sepeda Bersama and Bali Bintang.
Diversification Opportunities for Sepeda Bersama and Bali Bintang
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sepeda and Bali is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sepeda Bersama Indonesia and Bali Bintang Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bali Bintang Sejahtera and Sepeda Bersama 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 Sepeda Bersama Indonesia are associated (or correlated) with Bali Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bali Bintang Sejahtera has no effect on the direction of Sepeda Bersama i.e., Sepeda Bersama and Bali Bintang go up and down completely randomly.
Pair Corralation between Sepeda Bersama and Bali Bintang
Assuming the 90 days trading horizon Sepeda Bersama Indonesia is expected to generate 1.15 times more return on investment than Bali Bintang. However, Sepeda Bersama is 1.15 times more volatile than Bali Bintang Sejahtera. It trades about 0.1 of its potential returns per unit of risk. Bali Bintang Sejahtera is currently generating about -0.05 per unit of risk. If you would invest 18,577 in Sepeda Bersama Indonesia on August 31, 2024 and sell it today you would earn a total of 33,923 from holding Sepeda Bersama Indonesia or generate 182.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Sepeda Bersama Indonesia vs. Bali Bintang Sejahtera
Performance |
| Timeline |
| Sepeda Bersama Indonesia |
| Bali Bintang Sejahtera |
Sepeda Bersama and Bali Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sepeda Bersama and Bali Bintang
The main advantage of trading using opposite Sepeda Bersama and Bali Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sepeda Bersama position performs unexpectedly, Bali Bintang 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 Bali Bintang will offset losses from the drop in Bali Bintang's long position.| Sepeda Bersama vs. Autopedia Sukses Lestari | Sepeda Bersama vs. Champ Resto Indonesia | Sepeda Bersama vs. Adhi Commuter Properti | Sepeda Bersama vs. GTS Internasional Tbk |
| Bali Bintang vs. MD Pictures Tbk | Bali Bintang vs. MNC Studios International | Bali Bintang vs. MNC Vision Networks | Bali Bintang vs. Digital Mediatama Maxima |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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