Correlation Between PT Harapan and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both PT Harapan 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 PT Harapan and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Harapan Duta and Berkah Beton Sadaya, you can compare the effects of market volatilities on PT Harapan 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 PT Harapan with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Harapan and Berkah Beton.
Diversification Opportunities for PT Harapan and Berkah Beton
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HOPE and Berkah is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Harapan Duta 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 PT Harapan 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 PT Harapan Duta 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 PT Harapan i.e., PT Harapan and Berkah Beton go up and down completely randomly.
Pair Corralation between PT Harapan and Berkah Beton
Assuming the 90 days trading horizon PT Harapan Duta is expected to generate 0.52 times more return on investment than Berkah Beton. However, PT Harapan Duta is 1.93 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 -0.12 per unit of risk. If you would invest 5,300 in PT Harapan Duta on September 4, 2024 and sell it today you would lose (2,000) from holding PT Harapan Duta or give up 37.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.37% |
| Values | Daily Returns |
PT Harapan Duta vs. Berkah Beton Sadaya
Performance |
| Timeline |
| PT Harapan Duta |
| Berkah Beton Sadaya |
PT Harapan and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Harapan and Berkah Beton
The main advantage of trading using opposite PT Harapan and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Harapan 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.| PT Harapan vs. Ladangbaja Murni PT | PT Harapan vs. Berkah Beton Sadaya | PT Harapan vs. Cahayaputra Asa Keramik | PT Harapan vs. Diagnos Laboratorium Utama |
| Berkah Beton vs. PT Indonesia Kendaraan | Berkah Beton vs. Wijaya Karya Bangunan | Berkah Beton vs. Buyung Poetra Sembada | Berkah Beton vs. J Resources Asia |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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