Correlation Between Barito Pacific and Alumindo Light
Can any of the company-specific risk be diversified away by investing in both Barito Pacific and Alumindo Light 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 Barito Pacific and Alumindo Light into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barito Pacific Tbk and Alumindo Light Metal, you can compare the effects of market volatilities on Barito Pacific and Alumindo Light 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 Barito Pacific with a short position of Alumindo Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barito Pacific and Alumindo Light.
Diversification Opportunities for Barito Pacific and Alumindo Light
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barito and Alumindo is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Barito Pacific Tbk and Alumindo Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumindo Light Metal and Barito Pacific 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 Barito Pacific Tbk are associated (or correlated) with Alumindo Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumindo Light Metal has no effect on the direction of Barito Pacific i.e., Barito Pacific and Alumindo Light go up and down completely randomly.
Pair Corralation between Barito Pacific and Alumindo Light
If you would invest 7,400 in Alumindo Light Metal on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Alumindo Light Metal or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Barito Pacific Tbk vs. Alumindo Light Metal
Performance |
| Timeline |
| Barito Pacific Tbk |
| Alumindo Light Metal |
Barito Pacific and Alumindo Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barito Pacific and Alumindo Light
The main advantage of trading using opposite Barito Pacific and Alumindo Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barito Pacific position performs unexpectedly, Alumindo Light 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 Alumindo Light will offset losses from the drop in Alumindo Light's long position.| Barito Pacific vs. Indah Kiat Pulp | Barito Pacific vs. Medco Energi Internasional | Barito Pacific vs. Vale Indonesia Tbk | Barito Pacific vs. Charoen Pokphand Indonesia |
| Alumindo Light vs. Perusahaan Gas Negara | Alumindo Light vs. Telkom Indonesia Tbk | Alumindo Light vs. Mitra Pinasthika Mustika | Alumindo Light vs. Jakarta Int Hotels |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stocks Directory Find actively traded stocks across global markets |