Correlation Between Baramulti Suksessarana and Sumber Global
Can any of the company-specific risk be diversified away by investing in both Baramulti Suksessarana and Sumber Global 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 Sumber Global 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 Sumber Global Energy, you can compare the effects of market volatilities on Baramulti Suksessarana and Sumber Global 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 Sumber Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baramulti Suksessarana and Sumber Global.
Diversification Opportunities for Baramulti Suksessarana and Sumber Global
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Baramulti and Sumber is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Baramulti Suksessarana Tbk and Sumber Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Global Energy 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 Sumber Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Global Energy has no effect on the direction of Baramulti Suksessarana i.e., Baramulti Suksessarana and Sumber Global go up and down completely randomly.
Pair Corralation between Baramulti Suksessarana and Sumber Global
Assuming the 90 days trading horizon Baramulti Suksessarana is expected to generate 1.33 times less return on investment than Sumber Global. But when comparing it to its historical volatility, Baramulti Suksessarana Tbk is 3.47 times less risky than Sumber Global. It trades about 0.06 of its potential returns per unit of risk. Sumber Global Energy is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 37,964 in Sumber Global Energy on August 29, 2024 and sell it today you would earn a total of 2,036 from holding Sumber Global Energy or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baramulti Suksessarana Tbk vs. Sumber Global Energy
Performance |
| Timeline |
| Baramulti Suksessarana |
| Sumber Global Energy |
Baramulti Suksessarana and Sumber Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baramulti Suksessarana and Sumber Global
The main advantage of trading using opposite Baramulti Suksessarana and Sumber Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baramulti Suksessarana position performs unexpectedly, Sumber Global 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 Sumber Global will offset losses from the drop in Sumber Global'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 |
| Sumber Global vs. Golden Eagle Energy | Sumber Global vs. Baramulti Suksessarana Tbk | Sumber Global vs. TBS Energi Utama | Sumber Global vs. Resource Alam Indonesia |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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