Correlation Between Benakat Petroleum and Map Boga
Can any of the company-specific risk be diversified away by investing in both Benakat Petroleum and Map Boga 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 Map Boga 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 Map Boga Adiperkasa, you can compare the effects of market volatilities on Benakat Petroleum and Map Boga 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 Map Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benakat Petroleum and Map Boga.
Diversification Opportunities for Benakat Petroleum and Map Boga
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Benakat and Map is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Benakat Petroleum Energy and Map Boga Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Map Boga Adiperkasa 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 Map Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Map Boga Adiperkasa has no effect on the direction of Benakat Petroleum i.e., Benakat Petroleum and Map Boga go up and down completely randomly.
Pair Corralation between Benakat Petroleum and Map Boga
Assuming the 90 days trading horizon Benakat Petroleum Energy is expected to under-perform the Map Boga. In addition to that, Benakat Petroleum is 1.5 times more volatile than Map Boga Adiperkasa. It trades about -0.03 of its total potential returns per unit of risk. Map Boga Adiperkasa is currently generating about -0.01 per unit of volatility. If you would invest 186,500 in Map Boga Adiperkasa on August 25, 2024 and sell it today you would lose (43,500) from holding Map Boga Adiperkasa or give up 23.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benakat Petroleum Energy vs. Map Boga Adiperkasa
Performance |
| Timeline |
| Benakat Petroleum Energy |
| Map Boga Adiperkasa |
Benakat Petroleum and Map Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benakat Petroleum and Map Boga
The main advantage of trading using opposite Benakat Petroleum and Map Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benakat Petroleum position performs unexpectedly, Map Boga 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 Map Boga will offset losses from the drop in Map Boga's long position.| Benakat Petroleum vs. Bumi Resources Minerals | Benakat Petroleum vs. Energi Mega Persada | Benakat Petroleum vs. Delta Dunia Makmur | Benakat Petroleum vs. Darma Henwa Tbk |
| Map Boga vs. MAP Aktif Adiperkasa | Map Boga vs. Fast Food Indonesia | Map Boga vs. PT Sarimelati Kencana | Map Boga vs. Prodia Widyahusada Tbk |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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