Correlation Between Bayan Resources and Visi Media
Can any of the company-specific risk be diversified away by investing in both Bayan Resources and Visi Media 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 Visi Media 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 Visi Media Asia, you can compare the effects of market volatilities on Bayan Resources and Visi Media 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 Visi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayan Resources and Visi Media.
Diversification Opportunities for Bayan Resources and Visi Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bayan and Visi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bayan Resources Tbk and Visi Media Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visi Media Asia 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 Visi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visi Media Asia has no effect on the direction of Bayan Resources i.e., Bayan Resources and Visi Media go up and down completely randomly.
Pair Corralation between Bayan Resources and Visi Media
Assuming the 90 days trading horizon Bayan Resources Tbk is expected to generate 0.9 times more return on investment than Visi Media. However, Bayan Resources Tbk is 1.12 times less risky than Visi Media. It trades about 0.05 of its potential returns per unit of risk. Visi Media Asia is currently generating about -0.15 per unit of risk. If you would invest 1,211,224 in Bayan Resources Tbk on September 2, 2024 and sell it today you would earn a total of 746,276 from holding Bayan Resources Tbk or generate 61.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bayan Resources Tbk vs. Visi Media Asia
Performance |
| Timeline |
| Bayan Resources Tbk |
| Visi Media Asia |
Bayan Resources and Visi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayan Resources and Visi Media
The main advantage of trading using opposite Bayan Resources and Visi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayan Resources position performs unexpectedly, Visi Media 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 Visi Media will offset losses from the drop in Visi Media's long position.| Bayan Resources vs. Mitrabahtera Segara Sejati | Bayan Resources vs. Weha Transportasi Indonesia | Bayan Resources vs. Rig Tenders Tbk |
| Visi Media vs. Surya Semesta Internusa | Visi Media vs. Bumi Resources Minerals | Visi Media vs. Multipolar Tbk | Visi Media vs. Surya Citra 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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