Correlation Between Borneo Olah and Central Omega
Can any of the company-specific risk be diversified away by investing in both Borneo Olah and Central Omega 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 Borneo Olah and Central Omega into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borneo Olah Sarana and Central Omega Resources, you can compare the effects of market volatilities on Borneo Olah and Central Omega 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 Borneo Olah with a short position of Central Omega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borneo Olah and Central Omega.
Diversification Opportunities for Borneo Olah and Central Omega
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Borneo and Central is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Borneo Olah Sarana and Central Omega Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Omega Resources and Borneo Olah 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 Borneo Olah Sarana are associated (or correlated) with Central Omega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Omega Resources has no effect on the direction of Borneo Olah i.e., Borneo Olah and Central Omega go up and down completely randomly.
Pair Corralation between Borneo Olah and Central Omega
If you would invest 15,200 in Central Omega Resources on August 31, 2024 and sell it today you would earn a total of 6,600 from holding Central Omega Resources or generate 43.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borneo Olah Sarana vs. Central Omega Resources
Performance |
| Timeline |
| Borneo Olah Sarana |
| Central Omega Resources |
Borneo Olah and Central Omega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borneo Olah and Central Omega
The main advantage of trading using opposite Borneo Olah and Central Omega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borneo Olah position performs unexpectedly, Central Omega 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 Central Omega will offset losses from the drop in Central Omega's long position.| Borneo Olah vs. Alfa Energi Investama | Borneo Olah vs. Atlas Resources Tbk | Borneo Olah vs. Baramulti Suksessarana Tbk | Borneo Olah vs. Kapuas Prima Coal |
| Central Omega vs. Cita Mineral Investindo | Central Omega vs. Intiland Development Tbk | Central Omega vs. J Resources Asia | Central Omega vs. Resource Alam 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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