Correlation Between Betonjaya Manunggal and Berlina Tbk
Can any of the company-specific risk be diversified away by investing in both Betonjaya Manunggal and Berlina Tbk 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 Betonjaya Manunggal and Berlina Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Betonjaya Manunggal Tbk and Berlina Tbk, you can compare the effects of market volatilities on Betonjaya Manunggal and Berlina Tbk 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 Betonjaya Manunggal with a short position of Berlina Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betonjaya Manunggal and Berlina Tbk.
Diversification Opportunities for Betonjaya Manunggal and Berlina Tbk
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Betonjaya and Berlina is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Betonjaya Manunggal Tbk and Berlina Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berlina Tbk and Betonjaya Manunggal 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 Betonjaya Manunggal Tbk are associated (or correlated) with Berlina Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berlina Tbk has no effect on the direction of Betonjaya Manunggal i.e., Betonjaya Manunggal and Berlina Tbk go up and down completely randomly.
Pair Corralation between Betonjaya Manunggal and Berlina Tbk
Assuming the 90 days trading horizon Betonjaya Manunggal Tbk is expected to under-perform the Berlina Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Betonjaya Manunggal Tbk is 3.29 times less risky than Berlina Tbk. The stock trades about -0.06 of its potential returns per unit of risk. The Berlina Tbk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 66,500 in Berlina Tbk on November 22, 2024 and sell it today you would earn a total of 3,500 from holding Berlina Tbk or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Betonjaya Manunggal Tbk vs. Berlina Tbk
Performance |
| Timeline |
| Betonjaya Manunggal Tbk |
| Berlina Tbk |
Betonjaya Manunggal and Berlina Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betonjaya Manunggal and Berlina Tbk
The main advantage of trading using opposite Betonjaya Manunggal and Berlina Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betonjaya Manunggal position performs unexpectedly, Berlina Tbk 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 Berlina Tbk will offset losses from the drop in Berlina Tbk's long position.| Betonjaya Manunggal vs. Alumindo Light Metal | Betonjaya Manunggal vs. Duta Pertiwi Nusantara | Betonjaya Manunggal vs. Berlina Tbk | Betonjaya Manunggal vs. Asiaplast Industries Tbk |
| Berlina Tbk vs. Argha Karya Prima | Berlina Tbk vs. Asiaplast Industries Tbk | Berlina Tbk vs. Betonjaya Manunggal Tbk | Berlina Tbk vs. Champion Pacific 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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