Correlation Between Bayan Resources and Graha Andrasentra
Can any of the company-specific risk be diversified away by investing in both Bayan Resources and Graha Andrasentra 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 Graha Andrasentra 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 Graha Andrasentra Propertindo, you can compare the effects of market volatilities on Bayan Resources and Graha Andrasentra 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 Graha Andrasentra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayan Resources and Graha Andrasentra.
Diversification Opportunities for Bayan Resources and Graha Andrasentra
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bayan and Graha is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bayan Resources Tbk and Graha Andrasentra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Andrasentra 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 Graha Andrasentra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Andrasentra has no effect on the direction of Bayan Resources i.e., Bayan Resources and Graha Andrasentra go up and down completely randomly.
Pair Corralation between Bayan Resources and Graha Andrasentra
Assuming the 90 days trading horizon Bayan Resources Tbk is expected to generate 0.24 times more return on investment than Graha Andrasentra. However, Bayan Resources Tbk is 4.19 times less risky than Graha Andrasentra. It trades about 0.01 of its potential returns per unit of risk. Graha Andrasentra Propertindo is currently generating about -0.08 per unit of risk. If you would invest 1,889,705 in Bayan Resources Tbk on August 26, 2024 and sell it today you would earn a total of 7,795 from holding Bayan Resources Tbk or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayan Resources Tbk vs. Graha Andrasentra Propertindo
Performance |
| Timeline |
| Bayan Resources Tbk |
| Graha Andrasentra |
Bayan Resources and Graha Andrasentra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayan Resources and Graha Andrasentra
The main advantage of trading using opposite Bayan Resources and Graha Andrasentra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayan Resources position performs unexpectedly, Graha Andrasentra 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 Graha Andrasentra will offset losses from the drop in Graha Andrasentra'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 |
| Graha Andrasentra vs. Merdeka Copper Gold | Graha Andrasentra vs. Dyandra Media International | Graha Andrasentra vs. HK Metals Utama | Graha Andrasentra vs. Arkadia Digital Media |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| 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 | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |