Correlation Between Bakrie Brothers and Sanurhasta Mitra
Can any of the company-specific risk be diversified away by investing in both Bakrie Brothers and Sanurhasta Mitra 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 Bakrie Brothers and Sanurhasta Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bakrie Brothers Tbk and Sanurhasta Mitra PT, you can compare the effects of market volatilities on Bakrie Brothers and Sanurhasta Mitra 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 Bakrie Brothers with a short position of Sanurhasta Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakrie Brothers and Sanurhasta Mitra.
Diversification Opportunities for Bakrie Brothers and Sanurhasta Mitra
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bakrie and Sanurhasta is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bakrie Brothers Tbk and Sanurhasta Mitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanurhasta Mitra and Bakrie Brothers 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 Bakrie Brothers Tbk are associated (or correlated) with Sanurhasta Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanurhasta Mitra has no effect on the direction of Bakrie Brothers i.e., Bakrie Brothers and Sanurhasta Mitra go up and down completely randomly.
Pair Corralation between Bakrie Brothers and Sanurhasta Mitra
Assuming the 90 days trading horizon Bakrie Brothers Tbk is expected to under-perform the Sanurhasta Mitra. In addition to that, Bakrie Brothers is 1.29 times more volatile than Sanurhasta Mitra PT. It trades about -0.11 of its total potential returns per unit of risk. Sanurhasta Mitra PT is currently generating about 0.28 per unit of volatility. If you would invest 2,300 in Sanurhasta Mitra PT on August 30, 2024 and sell it today you would earn a total of 600.00 from holding Sanurhasta Mitra PT or generate 26.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bakrie Brothers Tbk vs. Sanurhasta Mitra PT
Performance |
| Timeline |
| Bakrie Brothers Tbk |
| Sanurhasta Mitra |
Bakrie Brothers and Sanurhasta Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakrie Brothers and Sanurhasta Mitra
The main advantage of trading using opposite Bakrie Brothers and Sanurhasta Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakrie Brothers position performs unexpectedly, Sanurhasta Mitra 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 Sanurhasta Mitra will offset losses from the drop in Sanurhasta Mitra's long position.| Bakrie Brothers vs. Bakrieland Development Tbk | Bakrie Brothers vs. Bakrie Sumatera Plantations | Bakrie Brothers vs. Energi Mega Persada | Bakrie Brothers vs. Darma Henwa Tbk |
| Sanurhasta Mitra vs. Bakrie Brothers Tbk | Sanurhasta Mitra vs. Bakrie Sumatera Plantations | Sanurhasta Mitra vs. Energi Mega Persada | Sanurhasta Mitra vs. Darma Henwa 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |