Correlation Between Berlina Tbk and Sinergi Inti
Can any of the company-specific risk be diversified away by investing in both Berlina Tbk and Sinergi Inti 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 Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berlina Tbk and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Berlina Tbk and Sinergi Inti 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 Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berlina Tbk and Sinergi Inti.
Diversification Opportunities for Berlina Tbk and Sinergi Inti
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Berlina and Sinergi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Berlina Tbk and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo 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 Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Berlina Tbk i.e., Berlina Tbk and Sinergi Inti go up and down completely randomly.
Pair Corralation between Berlina Tbk and Sinergi Inti
Assuming the 90 days trading horizon Berlina Tbk is expected to generate 1.21 times more return on investment than Sinergi Inti. However, Berlina Tbk is 1.21 times more volatile than Sinergi Inti Plastindo. It trades about 0.01 of its potential returns per unit of risk. Sinergi Inti Plastindo is currently generating about -0.06 per unit of risk. If you would invest 95,000 in Berlina Tbk on August 31, 2024 and sell it today you would lose (6,500) from holding Berlina Tbk or give up 6.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.44% |
| Values | Daily Returns |
Berlina Tbk vs. Sinergi Inti Plastindo
Performance |
| Timeline |
| Berlina Tbk |
| Sinergi Inti Plastindo |
Berlina Tbk and Sinergi Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berlina Tbk and Sinergi Inti
The main advantage of trading using opposite Berlina Tbk and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berlina Tbk position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti'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 |
| Sinergi Inti vs. Lotte Chemical Titan | Sinergi Inti vs. Agro Yasa Lestari | Sinergi Inti vs. Era Mandiri Cemerlang | Sinergi Inti vs. Jasnita Telekomindo 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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