Correlation Between Bayan Resources and PT Harapan
Can any of the company-specific risk be diversified away by investing in both Bayan Resources and PT Harapan 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 Harapan 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 Harapan Duta, you can compare the effects of market volatilities on Bayan Resources and PT Harapan 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 Harapan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayan Resources and PT Harapan.
Diversification Opportunities for Bayan Resources and PT Harapan
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bayan and HOPE is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bayan Resources Tbk and PT Harapan Duta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Harapan Duta 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 Harapan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Harapan Duta has no effect on the direction of Bayan Resources i.e., Bayan Resources and PT Harapan go up and down completely randomly.
Pair Corralation between Bayan Resources and PT Harapan
Assuming the 90 days trading horizon Bayan Resources Tbk is expected to generate 0.06 times more return on investment than PT Harapan. However, Bayan Resources Tbk is 15.98 times less risky than PT Harapan. It trades about -0.2 of its potential returns per unit of risk. PT Harapan Duta is currently generating about -0.16 per unit of risk. If you would invest 2,022,500 in Bayan Resources Tbk on January 13, 2025 and sell it today you would lose (22,500) from holding Bayan Resources Tbk or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayan Resources Tbk vs. PT Harapan Duta
Performance |
| Timeline |
| Bayan Resources Tbk |
| PT Harapan Duta |
Bayan Resources and PT Harapan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayan Resources and PT Harapan
The main advantage of trading using opposite Bayan Resources and PT Harapan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayan Resources position performs unexpectedly, PT Harapan 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 Harapan will offset losses from the drop in PT Harapan's long position.| Bayan Resources vs. Resource Alam Indonesia | Bayan Resources vs. Perdana Karya Perkasa | Bayan Resources vs. Exploitasi Energi Indonesia | Bayan Resources vs. Central Omega Resources |
| PT Harapan vs. Ladangbaja Murni PT | PT Harapan vs. Cahayaputra Asa Keramik | PT Harapan vs. Bundamedik Tbk PT |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |