Correlation Between Bumi Teknokultura and Trinitan Metals
Can any of the company-specific risk be diversified away by investing in both Bumi Teknokultura and Trinitan Metals 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 Bumi Teknokultura and Trinitan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumi Teknokultura Unggul and Trinitan Metals and, you can compare the effects of market volatilities on Bumi Teknokultura and Trinitan Metals 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 Bumi Teknokultura with a short position of Trinitan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumi Teknokultura and Trinitan Metals.
Diversification Opportunities for Bumi Teknokultura and Trinitan Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumi and Trinitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bumi Teknokultura Unggul and Trinitan Metals and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinitan Metals and Bumi Teknokultura 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 Bumi Teknokultura Unggul are associated (or correlated) with Trinitan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinitan Metals has no effect on the direction of Bumi Teknokultura i.e., Bumi Teknokultura and Trinitan Metals go up and down completely randomly.
Pair Corralation between Bumi Teknokultura and Trinitan Metals
If you would invest 5,100 in Trinitan Metals and on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Trinitan Metals and or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumi Teknokultura Unggul vs. Trinitan Metals and
Performance |
| Timeline |
| Bumi Teknokultura Unggul |
| Trinitan Metals |
Bumi Teknokultura and Trinitan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumi Teknokultura and Trinitan Metals
The main advantage of trading using opposite Bumi Teknokultura and Trinitan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumi Teknokultura position performs unexpectedly, Trinitan Metals 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 Trinitan Metals will offset losses from the drop in Trinitan Metals' long position.| Bumi Teknokultura vs. Equity Development Investment | Bumi Teknokultura vs. Ashmore Asset Management | Bumi Teknokultura vs. Dharma Polimetal Tbk | Bumi Teknokultura vs. Trinitan Metals and |
| Trinitan Metals vs. Fast Food Indonesia | Trinitan Metals vs. Diamond Food Indonesia | Trinitan Metals vs. Garuda Metalindo Tbk | Trinitan Metals vs. Ciptadana Asset Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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