Correlation Between Bisi International and Eterindo Wahanatama
Can any of the company-specific risk be diversified away by investing in both Bisi International and Eterindo Wahanatama 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 Eterindo Wahanatama 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 Eterindo Wahanatama Tbk, you can compare the effects of market volatilities on Bisi International and Eterindo Wahanatama 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 Eterindo Wahanatama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisi International and Eterindo Wahanatama.
Diversification Opportunities for Bisi International and Eterindo Wahanatama
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bisi and Eterindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bisi International Tbk and Eterindo Wahanatama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eterindo Wahanatama Tbk 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 Eterindo Wahanatama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eterindo Wahanatama Tbk has no effect on the direction of Bisi International i.e., Bisi International and Eterindo Wahanatama go up and down completely randomly.
Pair Corralation between Bisi International and Eterindo Wahanatama
Assuming the 90 days trading horizon Bisi International Tbk is expected to generate 0.62 times more return on investment than Eterindo Wahanatama. However, Bisi International Tbk is 1.62 times less risky than Eterindo Wahanatama. It trades about -0.04 of its potential returns per unit of risk. Eterindo Wahanatama Tbk is currently generating about -0.05 per unit of risk. If you would invest 155,070 in Bisi International Tbk on August 31, 2024 and sell it today you would lose (45,070) from holding Bisi International Tbk or give up 29.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Bisi International Tbk vs. Eterindo Wahanatama Tbk
Performance |
| Timeline |
| Bisi International Tbk |
| Eterindo Wahanatama Tbk |
Bisi International and Eterindo Wahanatama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisi International and Eterindo Wahanatama
The main advantage of trading using opposite Bisi International and Eterindo Wahanatama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisi International position performs unexpectedly, Eterindo Wahanatama 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 Eterindo Wahanatama will offset losses from the drop in Eterindo Wahanatama'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 |
| Eterindo Wahanatama vs. Budi Starch Sweetener | Eterindo Wahanatama vs. Intanwijaya Internasional Tbk | Eterindo Wahanatama vs. Duta Pertiwi Nusantara | Eterindo Wahanatama vs. Champion Pacific Indonesia |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |