Correlation Between Benakat Petroleum and Guna Timur
Can any of the company-specific risk be diversified away by investing in both Benakat Petroleum and Guna Timur 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 Guna Timur 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 Guna Timur Raya, you can compare the effects of market volatilities on Benakat Petroleum and Guna Timur 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 Guna Timur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benakat Petroleum and Guna Timur.
Diversification Opportunities for Benakat Petroleum and Guna Timur
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Benakat and Guna is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Benakat Petroleum Energy and Guna Timur Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guna Timur Raya 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 Guna Timur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guna Timur Raya has no effect on the direction of Benakat Petroleum i.e., Benakat Petroleum and Guna Timur go up and down completely randomly.
Pair Corralation between Benakat Petroleum and Guna Timur
Assuming the 90 days trading horizon Benakat Petroleum Energy is expected to under-perform the Guna Timur. In addition to that, Benakat Petroleum is 1.22 times more volatile than Guna Timur Raya. It trades about -0.08 of its total potential returns per unit of risk. Guna Timur Raya is currently generating about 0.44 per unit of volatility. If you would invest 8,500 in Guna Timur Raya on October 24, 2024 and sell it today you would earn a total of 1,300 from holding Guna Timur Raya or generate 15.29% 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. Guna Timur Raya
Performance |
| Timeline |
| Benakat Petroleum Energy |
| Guna Timur Raya |
Benakat Petroleum and Guna Timur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benakat Petroleum and Guna Timur
The main advantage of trading using opposite Benakat Petroleum and Guna Timur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benakat Petroleum position performs unexpectedly, Guna Timur 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 Guna Timur will offset losses from the drop in Guna Timur'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 |
| Guna Timur vs. Sriwahana | Guna Timur vs. PT Trimuda Nuansa | Guna Timur vs. Yelooo Integra Datanet | Guna Timur vs. Transcoal Pacific 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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