Correlation Between Bayan Resources and PT Carsurin
Can any of the company-specific risk be diversified away by investing in both Bayan Resources and PT Carsurin 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 Bayan Resources and PT Carsurin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayan Resources Tbk and PT Carsurin Tbk, you can compare the effects of market volatilities on Bayan Resources and PT Carsurin 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 Bayan Resources with a short position of PT Carsurin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayan Resources and PT Carsurin.
Diversification Opportunities for Bayan Resources and PT Carsurin
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bayan and CRSN is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bayan Resources Tbk and PT Carsurin Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Carsurin Tbk and Bayan Resources 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 Bayan Resources Tbk are associated (or correlated) with PT Carsurin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Carsurin Tbk has no effect on the direction of Bayan Resources i.e., Bayan Resources and PT Carsurin go up and down completely randomly.
Pair Corralation between Bayan Resources and PT Carsurin
Assuming the 90 days trading horizon Bayan Resources Tbk is expected to generate 0.51 times more return on investment than PT Carsurin. However, Bayan Resources Tbk is 1.97 times less risky than PT Carsurin. It trades about -0.05 of its potential returns per unit of risk. PT Carsurin Tbk is currently generating about -0.21 per unit of risk. If you would invest 2,062,500 in Bayan Resources Tbk on November 4, 2024 and sell it today you would lose (20,000) from holding Bayan Resources Tbk or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayan Resources Tbk vs. PT Carsurin Tbk
Performance |
| Timeline |
| Bayan Resources Tbk |
| PT Carsurin Tbk |
Bayan Resources and PT Carsurin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayan Resources and PT Carsurin
The main advantage of trading using opposite Bayan Resources and PT Carsurin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayan Resources position performs unexpectedly, PT Carsurin 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 PT Carsurin will offset losses from the drop in PT Carsurin's long position.| Bayan Resources vs. Indo Tambangraya Megah | Bayan Resources vs. Indika Energy Tbk | Bayan Resources vs. Darma Henwa Tbk | Bayan Resources vs. Harum Energy Tbk |
| PT Carsurin vs. Dharma Polimetal Tbk | PT Carsurin vs. Alumindo Light Metal | PT Carsurin vs. Garudafood Putra Putri | PT Carsurin vs. Optima Prima Metal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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