Correlation Between Buana Listya and Pelayaran Nelly
Can any of the company-specific risk be diversified away by investing in both Buana Listya and Pelayaran Nelly 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 Buana Listya and Pelayaran Nelly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Buana Listya Tama and Pelayaran Nelly Dwi, you can compare the effects of market volatilities on Buana Listya and Pelayaran Nelly 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 Buana Listya with a short position of Pelayaran Nelly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Buana Listya and Pelayaran Nelly.
Diversification Opportunities for Buana Listya and Pelayaran Nelly
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Buana and Pelayaran is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Buana Listya Tama and Pelayaran Nelly Dwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelayaran Nelly Dwi and Buana Listya 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 Buana Listya Tama are associated (or correlated) with Pelayaran Nelly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelayaran Nelly Dwi has no effect on the direction of Buana Listya i.e., Buana Listya and Pelayaran Nelly go up and down completely randomly.
Pair Corralation between Buana Listya and Pelayaran Nelly
Assuming the 90 days trading horizon Buana Listya Tama is expected to under-perform the Pelayaran Nelly. In addition to that, Buana Listya is 3.4 times more volatile than Pelayaran Nelly Dwi. It trades about -0.03 of its total potential returns per unit of risk. Pelayaran Nelly Dwi is currently generating about 0.04 per unit of volatility. If you would invest 43,352 in Pelayaran Nelly Dwi on September 1, 2024 and sell it today you would earn a total of 2,048 from holding Pelayaran Nelly Dwi or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Buana Listya Tama vs. Pelayaran Nelly Dwi
Performance |
| Timeline |
| Buana Listya Tama |
| Pelayaran Nelly Dwi |
Buana Listya and Pelayaran Nelly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Buana Listya and Pelayaran Nelly
The main advantage of trading using opposite Buana Listya and Pelayaran Nelly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Buana Listya position performs unexpectedly, Pelayaran Nelly 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 Pelayaran Nelly will offset losses from the drop in Pelayaran Nelly's long position.| Buana Listya vs. Ciptadana Asset Management | Buana Listya vs. Grand Kartech Tbk | Buana Listya vs. Anabatic Technologies Tbk | Buana Listya vs. Galva Technologies Tbk |
| Pelayaran Nelly vs. Trans Power Marine | Pelayaran Nelly vs. Pelita Samudera Shipping | Pelayaran Nelly vs. Samudera Indonesia Tbk | Pelayaran Nelly vs. Mitrabahtera Segara Sejati |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |