Correlation Between Benakat Petroleum and Kresna Graha
Can any of the company-specific risk be diversified away by investing in both Benakat Petroleum and Kresna Graha 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 Benakat Petroleum and Kresna Graha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benakat Petroleum Energy and Kresna Graha Investama, you can compare the effects of market volatilities on Benakat Petroleum and Kresna Graha 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 Benakat Petroleum with a short position of Kresna Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benakat Petroleum and Kresna Graha.
Diversification Opportunities for Benakat Petroleum and Kresna Graha
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Benakat and Kresna is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Benakat Petroleum Energy and Kresna Graha Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kresna Graha Investama and Benakat Petroleum 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 Benakat Petroleum Energy are associated (or correlated) with Kresna Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kresna Graha Investama has no effect on the direction of Benakat Petroleum i.e., Benakat Petroleum and Kresna Graha go up and down completely randomly.
Pair Corralation between Benakat Petroleum and Kresna Graha
Assuming the 90 days trading horizon Benakat Petroleum Energy is expected to generate 0.58 times more return on investment than Kresna Graha. However, Benakat Petroleum Energy is 1.72 times less risky than Kresna Graha. It trades about 0.1 of its potential returns per unit of risk. Kresna Graha Investama is currently generating about -0.05 per unit of risk. If you would invest 7,200 in Benakat Petroleum Energy on September 2, 2024 and sell it today you would earn a total of 600.00 from holding Benakat Petroleum Energy or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benakat Petroleum Energy vs. Kresna Graha Investama
Performance |
| Timeline |
| Benakat Petroleum Energy |
| Kresna Graha Investama |
Benakat Petroleum and Kresna Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benakat Petroleum and Kresna Graha
The main advantage of trading using opposite Benakat Petroleum and Kresna Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benakat Petroleum position performs unexpectedly, Kresna Graha 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 Kresna Graha will offset losses from the drop in Kresna Graha's long position.| Benakat Petroleum vs. Mitrabahtera Segara Sejati | Benakat Petroleum vs. Weha Transportasi Indonesia | Benakat Petroleum vs. Rig Tenders Tbk |
| Kresna Graha vs. Ace Hardware Indonesia | Kresna Graha vs. Merdeka Copper Gold | Kresna Graha vs. Mitra Pinasthika Mustika | Kresna Graha vs. Jakarta Int Hotels |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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