Correlation Between Bakrie Brothers and Personel Alih
Can any of the company-specific risk be diversified away by investing in both Bakrie Brothers and Personel Alih 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 Personel Alih 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 Personel Alih Daya, you can compare the effects of market volatilities on Bakrie Brothers and Personel Alih 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 Personel Alih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakrie Brothers and Personel Alih.
Diversification Opportunities for Bakrie Brothers and Personel Alih
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bakrie and Personel is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bakrie Brothers Tbk and Personel Alih Daya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personel Alih Daya 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 Personel Alih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personel Alih Daya has no effect on the direction of Bakrie Brothers i.e., Bakrie Brothers and Personel Alih go up and down completely randomly.
Pair Corralation between Bakrie Brothers and Personel Alih
Assuming the 90 days trading horizon Bakrie Brothers Tbk is expected to generate 1.01 times more return on investment than Personel Alih. However, Bakrie Brothers is 1.01 times more volatile than Personel Alih Daya. It trades about 0.11 of its potential returns per unit of risk. Personel Alih Daya is currently generating about -0.05 per unit of risk. If you would invest 3,800 in Bakrie Brothers Tbk on August 30, 2024 and sell it today you would earn a total of 800.00 from holding Bakrie Brothers Tbk or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bakrie Brothers Tbk vs. Personel Alih Daya
Performance |
| Timeline |
| Bakrie Brothers Tbk |
| Personel Alih Daya |
Bakrie Brothers and Personel Alih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakrie Brothers and Personel Alih
The main advantage of trading using opposite Bakrie Brothers and Personel Alih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakrie Brothers position performs unexpectedly, Personel Alih 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 Personel Alih will offset losses from the drop in Personel Alih'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 |
| Personel Alih vs. PT Surya Pertiwi | Personel Alih vs. Satria Mega Kencana | Personel Alih vs. Multifiling Mitra Indonesia | Personel Alih vs. Royal Prima PT |
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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