Correlation Between Natura City and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both Natura City and Bintang Oto 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 Natura City and Bintang Oto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natura City Developments and Bintang Oto Global, you can compare the effects of market volatilities on Natura City and Bintang Oto 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 Natura City with a short position of Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natura City and Bintang Oto.
Diversification Opportunities for Natura City and Bintang Oto
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Natura and Bintang is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Natura City Developments and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global and Natura City 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 Natura City Developments are associated (or correlated) with Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of Natura City i.e., Natura City and Bintang Oto go up and down completely randomly.
Pair Corralation between Natura City and Bintang Oto
Assuming the 90 days trading horizon Natura City Developments is expected to under-perform the Bintang Oto. In addition to that, Natura City is 7.92 times more volatile than Bintang Oto Global. It trades about -0.08 of its total potential returns per unit of risk. Bintang Oto Global is currently generating about -0.47 per unit of volatility. If you would invest 57,000 in Bintang Oto Global on August 31, 2024 and sell it today you would lose (4,500) from holding Bintang Oto Global or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natura City Developments vs. Bintang Oto Global
Performance |
| Timeline |
| Natura City Developments |
| Bintang Oto Global |
Natura City and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natura City and Bintang Oto
The main advantage of trading using opposite Natura City and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natura City position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto's long position.| Natura City vs. Greenwood Sejahtera Tbk | Natura City vs. Pollux Properti Indonesia | Natura City vs. PT Cahayasakti Investindo | Natura City vs. Bekasi Asri Pemula |
| Bintang Oto vs. Japfa Comfeed Indonesia | Bintang Oto vs. Charoen Pokphand Indonesia | Bintang Oto vs. Erajaya Swasembada Tbk | Bintang Oto vs. Indofood Cbp Sukses |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |