Correlation Between Capital Financial and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both Capital Financial and Berkah Beton 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 Capital Financial and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Financial Indonesia and Berkah Beton Sadaya, you can compare the effects of market volatilities on Capital Financial and Berkah Beton 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 Capital Financial with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Financial and Berkah Beton.
Diversification Opportunities for Capital Financial and Berkah Beton
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capital and Berkah is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Capital Financial Indonesia and Berkah Beton Sadaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkah Beton Sadaya and Capital Financial 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 Capital Financial Indonesia are associated (or correlated) with Berkah Beton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkah Beton Sadaya has no effect on the direction of Capital Financial i.e., Capital Financial and Berkah Beton go up and down completely randomly.
Pair Corralation between Capital Financial and Berkah Beton
Assuming the 90 days trading horizon Capital Financial Indonesia is expected to generate 0.36 times more return on investment than Berkah Beton. However, Capital Financial Indonesia is 2.75 times less risky than Berkah Beton. It trades about -0.01 of its potential returns per unit of risk. Berkah Beton Sadaya is currently generating about -0.1 per unit of risk. If you would invest 65,500 in Capital Financial Indonesia on August 31, 2024 and sell it today you would lose (14,500) from holding Capital Financial Indonesia or give up 22.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Capital Financial Indonesia vs. Berkah Beton Sadaya
Performance |
| Timeline |
| Capital Financial |
| Berkah Beton Sadaya |
Capital Financial and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Financial and Berkah Beton
The main advantage of trading using opposite Capital Financial and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Financial position performs unexpectedly, Berkah Beton 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 Berkah Beton will offset losses from the drop in Berkah Beton's long position.| Capital Financial vs. Bank BRISyariah Tbk | Capital Financial vs. Ace Hardware Indonesia | Capital Financial vs. Merdeka Copper Gold | Capital Financial vs. Mitra Pinasthika Mustika |
| Berkah Beton vs. Bk Harda Internasional | Berkah Beton vs. Bank Net Indonesia | Berkah Beton vs. Bank Yudha Bhakti | Berkah Beton vs. Medikaloka Hermina PT |
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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