Correlation Between Eagle Materials and PT Berkah
Can any of the company-specific risk be diversified away by investing in both Eagle Materials and PT Berkah 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 Eagle Materials and PT Berkah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Materials and PT Berkah Beton, you can compare the effects of market volatilities on Eagle Materials and PT Berkah 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 Eagle Materials with a short position of PT Berkah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Materials and PT Berkah.
Diversification Opportunities for Eagle Materials and PT Berkah
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and BHBSY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Materials and PT Berkah Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Berkah Beton and Eagle Materials 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 Eagle Materials are associated (or correlated) with PT Berkah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Berkah Beton has no effect on the direction of Eagle Materials i.e., Eagle Materials and PT Berkah go up and down completely randomly.
Pair Corralation between Eagle Materials and PT Berkah
If you would invest 24,449 in Eagle Materials on August 31, 2024 and sell it today you would earn a total of 6,144 from holding Eagle Materials or generate 25.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Materials vs. PT Berkah Beton
Performance |
| Timeline |
| Eagle Materials |
| PT Berkah Beton |
Eagle Materials and PT Berkah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Materials and PT Berkah
The main advantage of trading using opposite Eagle Materials and PT Berkah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Materials position performs unexpectedly, PT Berkah 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 Berkah will offset losses from the drop in PT Berkah's long position.| Eagle Materials vs. Vulcan Materials | Eagle Materials vs. CRH PLC ADR | Eagle Materials vs. Summit Materials | Eagle Materials vs. Cemex SAB de |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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