Correlation Between Bayan Resources and Sidomulyo Selaras
Can any of the company-specific risk be diversified away by investing in both Bayan Resources and Sidomulyo Selaras 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 Sidomulyo Selaras 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 Sidomulyo Selaras Tbk, you can compare the effects of market volatilities on Bayan Resources and Sidomulyo Selaras 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 Sidomulyo Selaras. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayan Resources and Sidomulyo Selaras.
Diversification Opportunities for Bayan Resources and Sidomulyo Selaras
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bayan and Sidomulyo is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bayan Resources Tbk and Sidomulyo Selaras Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidomulyo Selaras 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 Sidomulyo Selaras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidomulyo Selaras Tbk has no effect on the direction of Bayan Resources i.e., Bayan Resources and Sidomulyo Selaras go up and down completely randomly.
Pair Corralation between Bayan Resources and Sidomulyo Selaras
Assuming the 90 days trading horizon Bayan Resources Tbk is expected to generate 0.46 times more return on investment than Sidomulyo Selaras. However, Bayan Resources Tbk is 2.18 times less risky than Sidomulyo Selaras. It trades about 0.41 of its potential returns per unit of risk. Sidomulyo Selaras Tbk is currently generating about 0.07 per unit of risk. If you would invest 1,715,000 in Bayan Resources Tbk on August 31, 2024 and sell it today you would earn a total of 242,500 from holding Bayan Resources Tbk or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayan Resources Tbk vs. Sidomulyo Selaras Tbk
Performance |
| Timeline |
| Bayan Resources Tbk |
| Sidomulyo Selaras Tbk |
Bayan Resources and Sidomulyo Selaras Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayan Resources and Sidomulyo Selaras
The main advantage of trading using opposite Bayan Resources and Sidomulyo Selaras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayan Resources position performs unexpectedly, Sidomulyo Selaras 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 Sidomulyo Selaras will offset losses from the drop in Sidomulyo Selaras' long position.| Bayan Resources vs. Mitrabahtera Segara Sejati | Bayan Resources vs. Weha Transportasi Indonesia | Bayan Resources vs. Rig Tenders Tbk | Bayan Resources vs. Rukun Raharja Tbk |
| Sidomulyo Selaras vs. Matahari Department Store | Sidomulyo Selaras vs. Multi Medika Internasional | Sidomulyo Selaras vs. Visi Media Asia | Sidomulyo Selaras vs. Bayan Resources 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |