Correlation Between Buana Listya and Wijaya Karya
Can any of the company-specific risk be diversified away by investing in both Buana Listya and Wijaya Karya 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 Wijaya Karya 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 Wijaya Karya Beton, you can compare the effects of market volatilities on Buana Listya and Wijaya Karya 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 Wijaya Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Buana Listya and Wijaya Karya.
Diversification Opportunities for Buana Listya and Wijaya Karya
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Buana and Wijaya is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Buana Listya Tama and Wijaya Karya Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wijaya Karya Beton 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 Wijaya Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wijaya Karya Beton has no effect on the direction of Buana Listya i.e., Buana Listya and Wijaya Karya go up and down completely randomly.
Pair Corralation between Buana Listya and Wijaya Karya
Assuming the 90 days trading horizon Buana Listya Tama is expected to generate 0.72 times more return on investment than Wijaya Karya. However, Buana Listya Tama is 1.38 times less risky than Wijaya Karya. It trades about 0.37 of its potential returns per unit of risk. Wijaya Karya Beton is currently generating about 0.1 per unit of risk. If you would invest 11,200 in Buana Listya Tama on October 20, 2024 and sell it today you would earn a total of 1,800 from holding Buana Listya Tama or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Buana Listya Tama vs. Wijaya Karya Beton
Performance |
| Timeline |
| Buana Listya Tama |
| Wijaya Karya Beton |
Buana Listya and Wijaya Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Buana Listya and Wijaya Karya
The main advantage of trading using opposite Buana Listya and Wijaya Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Buana Listya position performs unexpectedly, Wijaya Karya 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 Wijaya Karya will offset losses from the drop in Wijaya Karya's long position.| Buana Listya vs. PT Indofood Sukses | Buana Listya vs. Dyandra Media International | Buana Listya vs. First Media Tbk | Buana Listya vs. Pertamina Geothermal Energy |
| Wijaya Karya vs. Trias Sentosa Tbk | Wijaya Karya vs. Slj Global Tbk | Wijaya Karya vs. Indo Acidatama Tbk | Wijaya Karya vs. PT Mulia Industrindo |
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
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |