Correlation Between Inter Delta and Bayu Buana
Can any of the company-specific risk be diversified away by investing in both Inter Delta and Bayu 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 Inter Delta and Bayu Buana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Delta Tbk and Bayu Buana Tbk, you can compare the effects of market volatilities on Inter Delta and Bayu 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 Inter Delta with a short position of Bayu Buana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Delta and Bayu Buana.
Diversification Opportunities for Inter Delta and Bayu Buana
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inter and Bayu is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Inter Delta Tbk and Bayu Buana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayu Buana Tbk and Inter Delta 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 Inter Delta Tbk are associated (or correlated) with Bayu Buana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayu Buana Tbk has no effect on the direction of Inter Delta i.e., Inter Delta and Bayu Buana go up and down completely randomly.
Pair Corralation between Inter Delta and Bayu Buana
Assuming the 90 days trading horizon Inter Delta Tbk is expected to generate 5.91 times more return on investment than Bayu Buana. However, Inter Delta is 5.91 times more volatile than Bayu Buana Tbk. It trades about 0.08 of its potential returns per unit of risk. Bayu Buana Tbk is currently generating about -0.29 per unit of risk. If you would invest 19,000 in Inter Delta Tbk on August 31, 2024 and sell it today you would earn a total of 1,800 from holding Inter Delta Tbk or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Inter Delta Tbk vs. Bayu Buana Tbk
Performance |
| Timeline |
| Inter Delta Tbk |
| Bayu Buana Tbk |
Inter Delta and Bayu Buana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Delta and Bayu Buana
The main advantage of trading using opposite Inter Delta and Bayu Buana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Delta position performs unexpectedly, Bayu 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 Bayu Buana will offset losses from the drop in Bayu Buana's long position.| Inter Delta vs. Intraco Penta Tbk | Inter Delta vs. Jakarta Setiabudi Internasional | Inter Delta vs. Perdana Bangun Pusaka | Inter Delta vs. Gema Grahasarana Tbk |
| Bayu Buana vs. Akbar Indomakmur Stimec | Bayu Buana vs. Mahaka Media Tbk | Bayu Buana vs. Fortune Indonesia Tbk | Bayu Buana vs. Gema Grahasarana 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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