Correlation Between Bayan Resources and Multi Spunindo
Can any of the company-specific risk be diversified away by investing in both Bayan Resources and Multi Spunindo 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 Multi Spunindo 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 Multi Spunindo Jaya, you can compare the effects of market volatilities on Bayan Resources and Multi Spunindo 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 Multi Spunindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayan Resources and Multi Spunindo.
Diversification Opportunities for Bayan Resources and Multi Spunindo
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bayan and Multi is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bayan Resources Tbk and Multi Spunindo Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Spunindo Jaya 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 Multi Spunindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Spunindo Jaya has no effect on the direction of Bayan Resources i.e., Bayan Resources and Multi Spunindo go up and down completely randomly.
Pair Corralation between Bayan Resources and Multi Spunindo
Assuming the 90 days trading horizon Bayan Resources is expected to generate 6.22 times less return on investment than Multi Spunindo. But when comparing it to its historical volatility, Bayan Resources Tbk is 3.25 times less risky than Multi Spunindo. It trades about 0.03 of its potential returns per unit of risk. Multi Spunindo Jaya is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 30,800 in Multi Spunindo Jaya on October 23, 2024 and sell it today you would earn a total of 600.00 from holding Multi Spunindo Jaya or generate 1.95% 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. Multi Spunindo Jaya
Performance |
| Timeline |
| Bayan Resources Tbk |
| Multi Spunindo Jaya |
Bayan Resources and Multi Spunindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayan Resources and Multi Spunindo
The main advantage of trading using opposite Bayan Resources and Multi Spunindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayan Resources position performs unexpectedly, Multi Spunindo 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 Multi Spunindo will offset losses from the drop in Multi Spunindo'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 |
| Multi Spunindo vs. Humpuss Intermoda Transportasi | Multi Spunindo vs. Pertamina Geothermal Energy | Multi Spunindo vs. Lotte Chemical Titan | Multi Spunindo vs. Mahaka Media Tbk |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |