Correlation Between Bali Bintang and Guna Timur
Can any of the company-specific risk be diversified away by investing in both Bali Bintang and Guna Timur 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 Bali Bintang and Guna Timur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bali Bintang Sejahtera and Guna Timur Raya, you can compare the effects of market volatilities on Bali Bintang and Guna Timur 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 Bali Bintang with a short position of Guna Timur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bali Bintang and Guna Timur.
Diversification Opportunities for Bali Bintang and Guna Timur
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bali and Guna is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bali Bintang Sejahtera and Guna Timur Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guna Timur Raya and Bali Bintang 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 Bali Bintang Sejahtera are associated (or correlated) with Guna Timur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guna Timur Raya has no effect on the direction of Bali Bintang i.e., Bali Bintang and Guna Timur go up and down completely randomly.
Pair Corralation between Bali Bintang and Guna Timur
Assuming the 90 days trading horizon Bali Bintang Sejahtera is expected to generate 0.29 times more return on investment than Guna Timur. However, Bali Bintang Sejahtera is 3.46 times less risky than Guna Timur. It trades about 0.06 of its potential returns per unit of risk. Guna Timur Raya is currently generating about -0.1 per unit of risk. If you would invest 9,800 in Bali Bintang Sejahtera on September 12, 2024 and sell it today you would earn a total of 200.00 from holding Bali Bintang Sejahtera or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bali Bintang Sejahtera vs. Guna Timur Raya
Performance |
| Timeline |
| Bali Bintang Sejahtera |
| Guna Timur Raya |
Bali Bintang and Guna Timur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bali Bintang and Guna Timur
The main advantage of trading using opposite Bali Bintang and Guna Timur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bali Bintang position performs unexpectedly, Guna Timur 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 Guna Timur will offset losses from the drop in Guna Timur's long position.| Bali Bintang vs. MD Pictures Tbk | Bali Bintang vs. MNC Studios International | Bali Bintang vs. MNC Vision Networks | Bali Bintang vs. Digital Mediatama Maxima |
| Guna Timur vs. PT Trimuda Nuansa | Guna Timur vs. Yelooo Integra Datanet | Guna Timur vs. Transcoal Pacific Tbk | Guna Timur vs. Weha Transportasi Indonesia |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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