Correlation Between Baramulti Suksessarana and PT Cahayasakti
Can any of the company-specific risk be diversified away by investing in both Baramulti Suksessarana and PT Cahayasakti 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 Baramulti Suksessarana and PT Cahayasakti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baramulti Suksessarana Tbk and PT Cahayasakti Investindo, you can compare the effects of market volatilities on Baramulti Suksessarana and PT Cahayasakti 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 Baramulti Suksessarana with a short position of PT Cahayasakti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baramulti Suksessarana and PT Cahayasakti.
Diversification Opportunities for Baramulti Suksessarana and PT Cahayasakti
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baramulti and CSIS is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Baramulti Suksessarana Tbk and PT Cahayasakti Investindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Cahayasakti Investindo and Baramulti Suksessarana 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 Baramulti Suksessarana Tbk are associated (or correlated) with PT Cahayasakti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Cahayasakti Investindo has no effect on the direction of Baramulti Suksessarana i.e., Baramulti Suksessarana and PT Cahayasakti go up and down completely randomly.
Pair Corralation between Baramulti Suksessarana and PT Cahayasakti
Assuming the 90 days trading horizon Baramulti Suksessarana Tbk is expected to under-perform the PT Cahayasakti. But the stock apears to be less risky and, when comparing its historical volatility, Baramulti Suksessarana Tbk is 1.26 times less risky than PT Cahayasakti. The stock trades about -0.23 of its potential returns per unit of risk. The PT Cahayasakti Investindo is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5,000 in PT Cahayasakti Investindo on August 31, 2024 and sell it today you would earn a total of 300.00 from holding PT Cahayasakti Investindo or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baramulti Suksessarana Tbk vs. PT Cahayasakti Investindo
Performance |
| Timeline |
| Baramulti Suksessarana |
| PT Cahayasakti Investindo |
Baramulti Suksessarana and PT Cahayasakti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baramulti Suksessarana and PT Cahayasakti
The main advantage of trading using opposite Baramulti Suksessarana and PT Cahayasakti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baramulti Suksessarana position performs unexpectedly, PT Cahayasakti 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 PT Cahayasakti will offset losses from the drop in PT Cahayasakti's long position.| Baramulti Suksessarana vs. Mitrabara Adiperdana PT | Baramulti Suksessarana vs. Bayan Resources Tbk | Baramulti Suksessarana vs. Abm Investama Tbk | Baramulti Suksessarana vs. TBS Energi Utama |
| PT Cahayasakti vs. Bumi Citra Permai | PT Cahayasakti vs. Bekasi Asri Pemula | PT Cahayasakti vs. Borneo Olah Sarana | PT Cahayasakti vs. Indonesia Pondasi Raya |
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.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |