Correlation Between Betonjaya Manunggal and Nusa Raya
Can any of the company-specific risk be diversified away by investing in both Betonjaya Manunggal and Nusa Raya 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 Nusa Raya 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 Nusa Raya Cipta, you can compare the effects of market volatilities on Betonjaya Manunggal and Nusa Raya 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 Nusa Raya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betonjaya Manunggal and Nusa Raya.
Diversification Opportunities for Betonjaya Manunggal and Nusa Raya
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Betonjaya and Nusa is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Betonjaya Manunggal Tbk and Nusa Raya Cipta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusa Raya Cipta 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 Nusa Raya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusa Raya Cipta has no effect on the direction of Betonjaya Manunggal i.e., Betonjaya Manunggal and Nusa Raya go up and down completely randomly.
Pair Corralation between Betonjaya Manunggal and Nusa Raya
Assuming the 90 days trading horizon Betonjaya Manunggal Tbk is expected to generate 4.08 times more return on investment than Nusa Raya. However, Betonjaya Manunggal is 4.08 times more volatile than Nusa Raya Cipta. It trades about 0.01 of its potential returns per unit of risk. Nusa Raya Cipta is currently generating about -0.17 per unit of risk. If you would invest 41,000 in Betonjaya Manunggal Tbk on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Betonjaya Manunggal Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Betonjaya Manunggal Tbk vs. Nusa Raya Cipta
Performance |
| Timeline |
| Betonjaya Manunggal Tbk |
| Nusa Raya Cipta |
Betonjaya Manunggal and Nusa Raya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betonjaya Manunggal and Nusa Raya
The main advantage of trading using opposite Betonjaya Manunggal and Nusa Raya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betonjaya Manunggal position performs unexpectedly, Nusa Raya 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 Nusa Raya will offset losses from the drop in Nusa Raya'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 |
| Nusa Raya vs. Total Bangun Persada | Nusa Raya vs. Surya Semesta Internusa | Nusa Raya vs. Acset Indonusa Tbk | Nusa Raya vs. Mitra Pinasthika Mustika |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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