Correlation Between Borneo Olah and TBS Energi
Can any of the company-specific risk be diversified away by investing in both Borneo Olah and TBS Energi 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 TBS Energi 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 TBS Energi Utama, you can compare the effects of market volatilities on Borneo Olah and TBS Energi 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 TBS Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borneo Olah and TBS Energi.
Diversification Opportunities for Borneo Olah and TBS Energi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Borneo and TBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Borneo Olah Sarana and TBS Energi Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TBS Energi Utama 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 TBS Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TBS Energi Utama has no effect on the direction of Borneo Olah i.e., Borneo Olah and TBS Energi go up and down completely randomly.
Pair Corralation between Borneo Olah and TBS Energi
If you would invest 5,000 in Borneo Olah Sarana on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Borneo Olah Sarana or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Borneo Olah Sarana vs. TBS Energi Utama
Performance |
| Timeline |
| Borneo Olah Sarana |
| TBS Energi Utama |
Borneo Olah and TBS Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borneo Olah and TBS Energi
The main advantage of trading using opposite Borneo Olah and TBS Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borneo Olah position performs unexpectedly, TBS Energi 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 TBS Energi will offset losses from the drop in TBS Energi'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 |
| TBS Energi vs. Petrosea Tbk | TBS Energi vs. Harum Energy Tbk | TBS Energi vs. Perdana Karya Perkasa | TBS Energi vs. Samindo Resources 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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