Correlation Between Bumi Resources and Trinitan Metals
Can any of the company-specific risk be diversified away by investing in both Bumi Resources and Trinitan Metals 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 Bumi Resources and Trinitan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumi Resources Minerals and Trinitan Metals and, you can compare the effects of market volatilities on Bumi Resources and Trinitan Metals 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 Bumi Resources with a short position of Trinitan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumi Resources and Trinitan Metals.
Diversification Opportunities for Bumi Resources and Trinitan Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumi and Trinitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bumi Resources Minerals and Trinitan Metals and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinitan Metals and Bumi Resources 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 Bumi Resources Minerals are associated (or correlated) with Trinitan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinitan Metals has no effect on the direction of Bumi Resources i.e., Bumi Resources and Trinitan Metals go up and down completely randomly.
Pair Corralation between Bumi Resources and Trinitan Metals
If you would invest 37,400 in Bumi Resources Minerals on August 29, 2024 and sell it today you would earn a total of 3,600 from holding Bumi Resources Minerals or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumi Resources Minerals vs. Trinitan Metals and
Performance |
| Timeline |
| Bumi Resources Minerals |
| Trinitan Metals |
Bumi Resources and Trinitan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumi Resources and Trinitan Metals
The main advantage of trading using opposite Bumi Resources and Trinitan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumi Resources position performs unexpectedly, Trinitan Metals 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 Trinitan Metals will offset losses from the drop in Trinitan Metals' long position.| Bumi Resources vs. Energi Mega Persada | Bumi Resources vs. Harum Energy Tbk | Bumi Resources vs. Delta Dunia Makmur | Bumi Resources vs. Benakat Petroleum Energy |
| Trinitan Metals vs. Merdeka Copper Gold | Trinitan Metals vs. Aneka Tambang Persero | Trinitan Metals vs. Bumi Resources Minerals | Trinitan Metals vs. Timah Persero 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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