Correlation Between Borneo Olah and Menteng Heritage
Can any of the company-specific risk be diversified away by investing in both Borneo Olah and Menteng Heritage 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 Menteng Heritage 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 Menteng Heritage Realty, you can compare the effects of market volatilities on Borneo Olah and Menteng Heritage 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 Menteng Heritage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borneo Olah and Menteng Heritage.
Diversification Opportunities for Borneo Olah and Menteng Heritage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Borneo and Menteng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Borneo Olah Sarana and Menteng Heritage Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menteng Heritage Realty 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 Menteng Heritage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menteng Heritage Realty has no effect on the direction of Borneo Olah i.e., Borneo Olah and Menteng Heritage go up and down completely randomly.
Pair Corralation between Borneo Olah and Menteng Heritage
Assuming the 90 days trading horizon Borneo Olah Sarana is expected to under-perform the Menteng Heritage. But the stock apears to be less risky and, when comparing its historical volatility, Borneo Olah Sarana is 1.19 times less risky than Menteng Heritage. The stock trades about -0.04 of its potential returns per unit of risk. The Menteng Heritage Realty is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,100 in Menteng Heritage Realty on September 4, 2024 and sell it today you would lose (400.00) from holding Menteng Heritage Realty or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Borneo Olah Sarana vs. Menteng Heritage Realty
Performance |
| Timeline |
| Borneo Olah Sarana |
| Menteng Heritage Realty |
Borneo Olah and Menteng Heritage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borneo Olah and Menteng Heritage
The main advantage of trading using opposite Borneo Olah and Menteng Heritage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borneo Olah position performs unexpectedly, Menteng Heritage 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 Menteng Heritage will offset losses from the drop in Menteng Heritage'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 |
| Menteng Heritage vs. Eastparc Hotel Tbk | Menteng Heritage vs. Jasnita Telekomindo Tbk | Menteng Heritage vs. Hotel Fitra International | Menteng Heritage vs. Borneo Olah Sarana |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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