Correlation Between Erajaya Swasembada and PT Buana
Can any of the company-specific risk be diversified away by investing in both Erajaya Swasembada and PT Buana 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 Erajaya Swasembada and PT Buana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erajaya Swasembada Tbk and PT Buana Artha, you can compare the effects of market volatilities on Erajaya Swasembada and PT Buana 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 Erajaya Swasembada with a short position of PT Buana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erajaya Swasembada and PT Buana.
Diversification Opportunities for Erajaya Swasembada and PT Buana
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Erajaya and STAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Erajaya Swasembada Tbk and PT Buana Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Buana Artha and Erajaya Swasembada 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 Erajaya Swasembada Tbk are associated (or correlated) with PT Buana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Buana Artha has no effect on the direction of Erajaya Swasembada i.e., Erajaya Swasembada and PT Buana go up and down completely randomly.
Pair Corralation between Erajaya Swasembada and PT Buana
If you would invest 5,000 in PT Buana Artha on September 3, 2024 and sell it today you would earn a total of 0.00 from holding PT Buana Artha or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erajaya Swasembada Tbk vs. PT Buana Artha
Performance |
| Timeline |
| Erajaya Swasembada Tbk |
| PT Buana Artha |
Erajaya Swasembada and PT Buana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erajaya Swasembada and PT Buana
The main advantage of trading using opposite Erajaya Swasembada and PT Buana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erajaya Swasembada position performs unexpectedly, PT Buana 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 PT Buana will offset losses from the drop in PT Buana's long position.| Erajaya Swasembada vs. Astra Graphia Tbk | Erajaya Swasembada vs. Mitra Pinasthika Mustika | Erajaya Swasembada vs. Jakarta Int Hotels | Erajaya Swasembada vs. Asuransi Harta Aman |
| PT Buana vs. Trisula International Tbk | PT Buana vs. Ricky Putra Globalindo | PT Buana vs. Sunson Textile Manufacturer | PT Buana vs. Sejahteraraya Anugrahjaya 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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