Correlation Between Karya Bersama and Bima Sakti
Can any of the company-specific risk be diversified away by investing in both Karya Bersama and Bima Sakti 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 Karya Bersama and Bima Sakti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karya Bersama Anugerah and Bima Sakti Pertiwi, you can compare the effects of market volatilities on Karya Bersama and Bima Sakti 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 Karya Bersama with a short position of Bima Sakti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karya Bersama and Bima Sakti.
Diversification Opportunities for Karya Bersama and Bima Sakti
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Karya and Bima is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Karya Bersama Anugerah and Bima Sakti Pertiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bima Sakti Pertiwi and Karya Bersama 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 Karya Bersama Anugerah are associated (or correlated) with Bima Sakti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bima Sakti Pertiwi has no effect on the direction of Karya Bersama i.e., Karya Bersama and Bima Sakti go up and down completely randomly.
Pair Corralation between Karya Bersama and Bima Sakti
Assuming the 90 days trading horizon Karya Bersama is expected to generate 1.36 times less return on investment than Bima Sakti. In addition to that, Karya Bersama is 2.75 times more volatile than Bima Sakti Pertiwi. It trades about 0.02 of its total potential returns per unit of risk. Bima Sakti Pertiwi is currently generating about 0.07 per unit of volatility. If you would invest 5,200 in Bima Sakti Pertiwi on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Bima Sakti Pertiwi or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karya Bersama Anugerah vs. Bima Sakti Pertiwi
Performance |
| Timeline |
| Karya Bersama Anugerah |
| Bima Sakti Pertiwi |
Karya Bersama and Bima Sakti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karya Bersama and Bima Sakti
The main advantage of trading using opposite Karya Bersama and Bima Sakti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karya Bersama position performs unexpectedly, Bima Sakti 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 Bima Sakti will offset losses from the drop in Bima Sakti's long position.| Karya Bersama vs. Putra Rajawali Kencana | Karya Bersama vs. Repower Asia Indonesia | Karya Bersama vs. DMS Propertindo Tbk | Karya Bersama vs. Perintis Triniti Properti |
| Bima Sakti vs. Hotel Sahid Jaya | Bima Sakti vs. Surya Citra Media | Bima Sakti vs. PT Homeco Victoria | Bima Sakti vs. Indosterling Technomedia 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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