Correlation Between Bhuwanatala Indah and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Bhuwanatala Indah and Mitra Keluarga 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 Bhuwanatala Indah and Mitra Keluarga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bhuwanatala Indah Permai and Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Bhuwanatala Indah and Mitra Keluarga 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 Bhuwanatala Indah with a short position of Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhuwanatala Indah and Mitra Keluarga.
Diversification Opportunities for Bhuwanatala Indah and Mitra Keluarga
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bhuwanatala and Mitra is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bhuwanatala Indah Permai and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat and Bhuwanatala Indah 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 Bhuwanatala Indah Permai are associated (or correlated) with Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Bhuwanatala Indah i.e., Bhuwanatala Indah and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Bhuwanatala Indah and Mitra Keluarga
Assuming the 90 days trading horizon Bhuwanatala Indah Permai is expected to generate 1.49 times more return on investment than Mitra Keluarga. However, Bhuwanatala Indah is 1.49 times more volatile than Mitra Keluarga Karyasehat. It trades about 0.19 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.08 per unit of risk. If you would invest 2,900 in Bhuwanatala Indah Permai on September 1, 2024 and sell it today you would earn a total of 300.00 from holding Bhuwanatala Indah Permai or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bhuwanatala Indah Permai vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Bhuwanatala Indah Permai |
| Mitra Keluarga Karyasehat |
Bhuwanatala Indah and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bhuwanatala Indah and Mitra Keluarga
The main advantage of trading using opposite Bhuwanatala Indah and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bhuwanatala Indah position performs unexpectedly, Mitra Keluarga 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 Mitra Keluarga will offset losses from the drop in Mitra Keluarga's long position.| Bhuwanatala Indah vs. Lippo Cikarang Tbk | Bhuwanatala Indah vs. Lippo Karawaci Tbk | Bhuwanatala Indah vs. Intiland Development Tbk | Bhuwanatala Indah vs. Mitra Pinasthika Mustika |
| Mitra Keluarga vs. Merdeka Copper Gold | Mitra Keluarga vs. Tower Bersama Infrastructure | Mitra Keluarga vs. Erajaya Swasembada Tbk | Mitra Keluarga vs. Surya Citra Media |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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