Correlation Between Bintang Oto and Arkadia Digital
Can any of the company-specific risk be diversified away by investing in both Bintang Oto and Arkadia Digital 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 Arkadia Digital 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 Arkadia Digital Media, you can compare the effects of market volatilities on Bintang Oto and Arkadia Digital 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 Arkadia Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bintang Oto and Arkadia Digital.
Diversification Opportunities for Bintang Oto and Arkadia Digital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bintang and Arkadia is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bintang Oto Global and Arkadia Digital Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkadia Digital Media 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 Arkadia Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkadia Digital Media has no effect on the direction of Bintang Oto i.e., Bintang Oto and Arkadia Digital go up and down completely randomly.
Pair Corralation between Bintang Oto and Arkadia Digital
Assuming the 90 days trading horizon Bintang Oto Global is expected to generate 0.78 times more return on investment than Arkadia Digital. However, Bintang Oto Global is 1.29 times less risky than Arkadia Digital. It trades about 0.12 of its potential returns per unit of risk. Arkadia Digital Media is currently generating about 0.02 per unit of risk. If you would invest 55,000 in Bintang Oto Global on November 3, 2024 and sell it today you would earn a total of 3,500 from holding Bintang Oto Global or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bintang Oto Global vs. Arkadia Digital Media
Performance |
| Timeline |
| Bintang Oto Global |
| Arkadia Digital Media |
Bintang Oto and Arkadia Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bintang Oto and Arkadia Digital
The main advantage of trading using opposite Bintang Oto and Arkadia Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bintang Oto position performs unexpectedly, Arkadia Digital 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 Arkadia Digital will offset losses from the drop in Arkadia Digital'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 |
| Arkadia Digital vs. Electronic City Indonesia | Arkadia Digital vs. MD Pictures Tbk | Arkadia Digital vs. Bintang Oto Global | Arkadia Digital vs. Graha Layar Prima |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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