Correlation Between Bintang Oto and Graha Layar
Can any of the company-specific risk be diversified away by investing in both Bintang Oto and Graha Layar 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 Graha Layar 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 Graha Layar Prima, you can compare the effects of market volatilities on Bintang Oto and Graha Layar 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 Graha Layar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bintang Oto and Graha Layar.
Diversification Opportunities for Bintang Oto and Graha Layar
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bintang and Graha is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bintang Oto Global and Graha Layar Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Layar Prima 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 Graha Layar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Layar Prima has no effect on the direction of Bintang Oto i.e., Bintang Oto and Graha Layar go up and down completely randomly.
Pair Corralation between Bintang Oto and Graha Layar
Assuming the 90 days trading horizon Bintang Oto Global is expected to under-perform the Graha Layar. In addition to that, Bintang Oto is 2.49 times more volatile than Graha Layar Prima. It trades about -0.24 of its total potential returns per unit of risk. Graha Layar Prima is currently generating about 0.07 per unit of volatility. If you would invest 192,500 in Graha Layar Prima on August 26, 2024 and sell it today you would earn a total of 7,500 from holding Graha Layar Prima or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bintang Oto Global vs. Graha Layar Prima
Performance |
| Timeline |
| Bintang Oto Global |
| Graha Layar Prima |
Bintang Oto and Graha Layar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bintang Oto and Graha Layar
The main advantage of trading using opposite Bintang Oto and Graha Layar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bintang Oto position performs unexpectedly, Graha Layar 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 Graha Layar will offset losses from the drop in Graha Layar'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 |
| Graha Layar vs. Electronic City Indonesia | Graha Layar vs. Bayu Buana Tbk | Graha Layar vs. Bintang Oto Global | Graha Layar vs. Garuda Metalindo 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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