Correlation Between Hartadinata Abadi and Bali Bintang
Can any of the company-specific risk be diversified away by investing in both Hartadinata Abadi and Bali Bintang 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 Hartadinata Abadi and Bali Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartadinata Abadi Tbk and Bali Bintang Sejahtera, you can compare the effects of market volatilities on Hartadinata Abadi and Bali Bintang 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 Hartadinata Abadi with a short position of Bali Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartadinata Abadi and Bali Bintang.
Diversification Opportunities for Hartadinata Abadi and Bali Bintang
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hartadinata and Bali is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hartadinata Abadi Tbk and Bali Bintang Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bali Bintang Sejahtera and Hartadinata Abadi 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 Hartadinata Abadi Tbk are associated (or correlated) with Bali Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bali Bintang Sejahtera has no effect on the direction of Hartadinata Abadi i.e., Hartadinata Abadi and Bali Bintang go up and down completely randomly.
Pair Corralation between Hartadinata Abadi and Bali Bintang
Assuming the 90 days trading horizon Hartadinata Abadi Tbk is expected to generate 3.29 times more return on investment than Bali Bintang. However, Hartadinata Abadi is 3.29 times more volatile than Bali Bintang Sejahtera. It trades about 0.3 of its potential returns per unit of risk. Bali Bintang Sejahtera is currently generating about -0.07 per unit of risk. If you would invest 32,800 in Hartadinata Abadi Tbk on November 3, 2024 and sell it today you would earn a total of 10,400 from holding Hartadinata Abadi Tbk or generate 31.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartadinata Abadi Tbk vs. Bali Bintang Sejahtera
Performance |
| Timeline |
| Hartadinata Abadi Tbk |
| Bali Bintang Sejahtera |
Hartadinata Abadi and Bali Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartadinata Abadi and Bali Bintang
The main advantage of trading using opposite Hartadinata Abadi and Bali Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartadinata Abadi position performs unexpectedly, Bali Bintang 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 Bali Bintang will offset losses from the drop in Bali Bintang's long position.| Hartadinata Abadi vs. Steel Pipe Industry | Hartadinata Abadi vs. Puradelta Lestari PT | Hartadinata Abadi vs. Jasa Armada Indonesia | Hartadinata Abadi vs. Integra Indocabinet Tbk |
| Bali Bintang vs. MD Pictures Tbk | Bali Bintang vs. MNC Studios International | Bali Bintang vs. MNC Vision Networks | Bali Bintang vs. Digital Mediatama Maxima |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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