Correlation Between Bisi International and Saraswanti Anugerah
Can any of the company-specific risk be diversified away by investing in both Bisi International and Saraswanti Anugerah 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 Saraswanti Anugerah 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 Saraswanti Anugerah Makmur, you can compare the effects of market volatilities on Bisi International and Saraswanti Anugerah 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 Saraswanti Anugerah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisi International and Saraswanti Anugerah.
Diversification Opportunities for Bisi International and Saraswanti Anugerah
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bisi and Saraswanti is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bisi International Tbk and Saraswanti Anugerah Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saraswanti Anugerah 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 Saraswanti Anugerah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saraswanti Anugerah has no effect on the direction of Bisi International i.e., Bisi International and Saraswanti Anugerah go up and down completely randomly.
Pair Corralation between Bisi International and Saraswanti Anugerah
Assuming the 90 days trading horizon Bisi International Tbk is expected to under-perform the Saraswanti Anugerah. In addition to that, Bisi International is 1.14 times more volatile than Saraswanti Anugerah Makmur. It trades about -0.02 of its total potential returns per unit of risk. Saraswanti Anugerah Makmur is currently generating about 0.07 per unit of volatility. If you would invest 45,335 in Saraswanti Anugerah Makmur on September 3, 2024 and sell it today you would earn a total of 29,165 from holding Saraswanti Anugerah Makmur or generate 64.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bisi International Tbk vs. Saraswanti Anugerah Makmur
Performance |
| Timeline |
| Bisi International Tbk |
| Saraswanti Anugerah |
Bisi International and Saraswanti Anugerah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisi International and Saraswanti Anugerah
The main advantage of trading using opposite Bisi International and Saraswanti Anugerah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisi International position performs unexpectedly, Saraswanti Anugerah 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 Saraswanti Anugerah will offset losses from the drop in Saraswanti Anugerah's long position.| Bisi International vs. Astra International Tbk | Bisi International vs. Unilever Indonesia Tbk | Bisi International vs. Telkom Indonesia Tbk | Bisi International vs. Bank Mandiri Persero |
| Saraswanti Anugerah vs. Panca Budi Idaman | Saraswanti Anugerah vs. Gunung Raja Paksi | Saraswanti Anugerah vs. Aneka Gas Industri | Saraswanti Anugerah vs. Mark Dynamics 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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