Correlation Between Bintang Oto and Blue Bird
Can any of the company-specific risk be diversified away by investing in both Bintang Oto and Blue Bird 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 Bintang Oto and Blue Bird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bintang Oto Global and Blue Bird Tbk, you can compare the effects of market volatilities on Bintang Oto and Blue Bird 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 Bintang Oto with a short position of Blue Bird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bintang Oto and Blue Bird.
Diversification Opportunities for Bintang Oto and Blue Bird
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bintang and Blue is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bintang Oto Global and Blue Bird Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Bird Tbk and Bintang Oto 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 Bintang Oto Global are associated (or correlated) with Blue Bird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Bird Tbk has no effect on the direction of Bintang Oto i.e., Bintang Oto and Blue Bird go up and down completely randomly.
Pair Corralation between Bintang Oto and Blue Bird
Assuming the 90 days trading horizon Bintang Oto Global is expected to generate 2.31 times more return on investment than Blue Bird. However, Bintang Oto is 2.31 times more volatile than Blue Bird Tbk. It trades about 0.17 of its potential returns per unit of risk. Blue Bird Tbk is currently generating about -0.05 per unit of risk. If you would invest 54,500 in Bintang Oto Global on October 23, 2024 and sell it today you would earn a total of 5,500 from holding Bintang Oto Global or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bintang Oto Global vs. Blue Bird Tbk
Performance |
| Timeline |
| Bintang Oto Global |
| Blue Bird Tbk |
Bintang Oto and Blue Bird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bintang Oto and Blue Bird
The main advantage of trading using opposite Bintang Oto and Blue Bird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bintang Oto position performs unexpectedly, Blue Bird 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 Blue Bird will offset losses from the drop in Blue Bird's long position.| Bintang Oto vs. Surya Permata Andalan | Bintang Oto vs. Aneka Gas Industri | Bintang Oto vs. Buana Listya Tama | Bintang Oto vs. Trisula Textile Industries |
| Blue Bird vs. Adi Sarana Armada | Blue Bird vs. Mitra Keluarga Karyasehat | Blue Bird vs. Matahari Department Store | Blue Bird vs. Soechi Lines 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |