Correlation Between Bisi International and Budi Starch
Can any of the company-specific risk be diversified away by investing in both Bisi International and Budi Starch 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 Bisi International and Budi Starch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bisi International Tbk and Budi Starch Sweetener, you can compare the effects of market volatilities on Bisi International and Budi Starch 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 Bisi International with a short position of Budi Starch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisi International and Budi Starch.
Diversification Opportunities for Bisi International and Budi Starch
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bisi and Budi is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bisi International Tbk and Budi Starch Sweetener in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Budi Starch Sweetener and Bisi International 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 Bisi International Tbk are associated (or correlated) with Budi Starch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Budi Starch Sweetener has no effect on the direction of Bisi International i.e., Bisi International and Budi Starch go up and down completely randomly.
Pair Corralation between Bisi International and Budi Starch
Assuming the 90 days trading horizon Bisi International Tbk is expected to under-perform the Budi Starch. In addition to that, Bisi International is 1.14 times more volatile than Budi Starch Sweetener. It trades about -0.04 of its total potential returns per unit of risk. Budi Starch Sweetener is currently generating about 0.02 per unit of volatility. If you would invest 21,751 in Budi Starch Sweetener on August 31, 2024 and sell it today you would earn a total of 1,449 from holding Budi Starch Sweetener or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Bisi International Tbk vs. Budi Starch Sweetener
Performance |
| Timeline |
| Bisi International Tbk |
| Budi Starch Sweetener |
Bisi International and Budi Starch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisi International and Budi Starch
The main advantage of trading using opposite Bisi International and Budi Starch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisi International position performs unexpectedly, Budi Starch 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 Budi Starch will offset losses from the drop in Budi Starch's long position.| Bisi International vs. Sampoerna Agro Tbk | Bisi International vs. Bakrie Sumatera Plantations | Bisi International vs. Tunas Baru Lampung | Bisi International vs. Darma Henwa Tbk |
| Budi Starch vs. Eterindo Wahanatama Tbk | Budi Starch vs. Central Proteina Prima | Budi Starch vs. Bisi International Tbk | Budi Starch vs. Bumi Teknokultura Unggul |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |