Correlation Between Berlina Tbk and Asahimas Flat
Can any of the company-specific risk be diversified away by investing in both Berlina Tbk and Asahimas Flat 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 Asahimas Flat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berlina Tbk and Asahimas Flat Glass, you can compare the effects of market volatilities on Berlina Tbk and Asahimas Flat 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 Asahimas Flat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berlina Tbk and Asahimas Flat.
Diversification Opportunities for Berlina Tbk and Asahimas Flat
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Berlina and Asahimas is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Berlina Tbk and Asahimas Flat Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahimas Flat Glass 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 Asahimas Flat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahimas Flat Glass has no effect on the direction of Berlina Tbk i.e., Berlina Tbk and Asahimas Flat go up and down completely randomly.
Pair Corralation between Berlina Tbk and Asahimas Flat
Assuming the 90 days trading horizon Berlina Tbk is expected to generate 2.32 times more return on investment than Asahimas Flat. However, Berlina Tbk is 2.32 times more volatile than Asahimas Flat Glass. It trades about 0.0 of its potential returns per unit of risk. Asahimas Flat Glass is currently generating about -0.02 per unit of risk. If you would invest 94,500 in Berlina Tbk on August 29, 2024 and sell it today you would lose (23,000) from holding Berlina Tbk or give up 24.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berlina Tbk vs. Asahimas Flat Glass
Performance |
| Timeline |
| Berlina Tbk |
| Asahimas Flat Glass |
Berlina Tbk and Asahimas Flat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berlina Tbk and Asahimas Flat
The main advantage of trading using opposite Berlina Tbk and Asahimas Flat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berlina Tbk position performs unexpectedly, Asahimas Flat 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 Asahimas Flat will offset losses from the drop in Asahimas Flat'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 |
| Asahimas Flat vs. Arwana Citramulia Tbk | Asahimas Flat vs. Asiaplast Industries Tbk | Asahimas Flat vs. Argha Karya Prima | Asahimas Flat vs. Astra Graphia 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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