Correlation Between Bayan Resources and TBS Energi
Can any of the company-specific risk be diversified away by investing in both Bayan Resources and TBS Energi 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 TBS Energi 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 TBS Energi Utama, you can compare the effects of market volatilities on Bayan Resources and TBS Energi 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 TBS Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayan Resources and TBS Energi.
Diversification Opportunities for Bayan Resources and TBS Energi
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bayan and TBS is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bayan Resources Tbk and TBS Energi Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TBS Energi Utama 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 TBS Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TBS Energi Utama has no effect on the direction of Bayan Resources i.e., Bayan Resources and TBS Energi go up and down completely randomly.
Pair Corralation between Bayan Resources and TBS Energi
Assuming the 90 days trading horizon Bayan Resources Tbk is expected to generate 0.29 times more return on investment than TBS Energi. However, Bayan Resources Tbk is 3.47 times less risky than TBS Energi. It trades about 0.38 of its potential returns per unit of risk. TBS Energi Utama is currently generating about -0.2 per unit of risk. If you would invest 1,710,000 in Bayan Resources Tbk on August 26, 2024 and sell it today you would earn a total of 187,500 from holding Bayan Resources Tbk or generate 10.96% 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. TBS Energi Utama
Performance |
| Timeline |
| Bayan Resources Tbk |
| TBS Energi Utama |
Bayan Resources and TBS Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayan Resources and TBS Energi
The main advantage of trading using opposite Bayan Resources and TBS Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayan Resources position performs unexpectedly, TBS Energi 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 TBS Energi will offset losses from the drop in TBS Energi'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 |
| TBS Energi vs. Golden Eagle Energy | TBS Energi vs. Baramulti Suksessarana Tbk | TBS Energi vs. Samindo Resources Tbk | TBS Energi vs. Resource Alam Indonesia |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |