Correlation Between Bayan Resources and Super Energy
Can any of the company-specific risk be diversified away by investing in both Bayan Resources and Super Energy 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 Super Energy 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 Super Energy Tbk, you can compare the effects of market volatilities on Bayan Resources and Super Energy 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 Super Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayan Resources and Super Energy.
Diversification Opportunities for Bayan Resources and Super Energy
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bayan and Super is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bayan Resources Tbk and Super Energy Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Energy 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 Super Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Energy Tbk has no effect on the direction of Bayan Resources i.e., Bayan Resources and Super Energy go up and down completely randomly.
Pair Corralation between Bayan Resources and Super Energy
Assuming the 90 days trading horizon Bayan Resources Tbk is expected to generate 0.13 times more return on investment than Super Energy. However, Bayan Resources Tbk is 7.46 times less risky than Super Energy. It trades about -0.46 of its potential returns per unit of risk. Super Energy Tbk is currently generating about -0.22 per unit of risk. If you would invest 2,040,000 in Bayan Resources Tbk on November 28, 2024 and sell it today you would lose (105,000) from holding Bayan Resources Tbk or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayan Resources Tbk vs. Super Energy Tbk
Performance |
| Timeline |
| Bayan Resources Tbk |
| Super Energy Tbk |
Bayan Resources and Super Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayan Resources and Super Energy
The main advantage of trading using opposite Bayan Resources and Super Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayan Resources position performs unexpectedly, Super Energy 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 Super Energy will offset losses from the drop in Super Energy'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 |
| Super Energy vs. Transcoal Pacific Tbk | Super Energy vs. Sillo Maritime Perdana | Super Energy vs. Pollux Properti Indonesia | Super Energy vs. Mahkota Group 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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