Correlation Between Berlina Tbk and Argha Karya
Can any of the company-specific risk be diversified away by investing in both Berlina Tbk and Argha Karya 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 Berlina Tbk and Argha Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berlina Tbk and Argha Karya Prima, you can compare the effects of market volatilities on Berlina Tbk and Argha Karya 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 Berlina Tbk with a short position of Argha Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berlina Tbk and Argha Karya.
Diversification Opportunities for Berlina Tbk and Argha Karya
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berlina and Argha is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Berlina Tbk and Argha Karya Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argha Karya Prima and Berlina Tbk 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 Berlina Tbk are associated (or correlated) with Argha Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argha Karya Prima has no effect on the direction of Berlina Tbk i.e., Berlina Tbk and Argha Karya go up and down completely randomly.
Pair Corralation between Berlina Tbk and Argha Karya
Assuming the 90 days trading horizon Berlina Tbk is expected to generate 0.78 times more return on investment than Argha Karya. However, Berlina Tbk is 1.29 times less risky than Argha Karya. It trades about -0.02 of its potential returns per unit of risk. Argha Karya Prima is currently generating about -0.14 per unit of risk. If you would invest 70,000 in Berlina Tbk on October 22, 2024 and sell it today you would lose (500.00) from holding Berlina Tbk or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berlina Tbk vs. Argha Karya Prima
Performance |
| Timeline |
| Berlina Tbk |
| Argha Karya Prima |
Berlina Tbk and Argha Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berlina Tbk and Argha Karya
The main advantage of trading using opposite Berlina Tbk and Argha Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berlina Tbk position performs unexpectedly, Argha Karya 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 Argha Karya will offset losses from the drop in Argha Karya's long position.| Berlina Tbk vs. Argha Karya Prima | Berlina Tbk vs. Asiaplast Industries Tbk | Berlina Tbk vs. Betonjaya Manunggal Tbk | Berlina Tbk vs. Champion Pacific Indonesia |
| Argha Karya vs. Asiaplast Industries Tbk | Argha Karya vs. Alumindo Light Metal | Argha Karya vs. Berlina Tbk | Argha Karya vs. Anugerah Kagum Karya |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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