Correlation Between Bangun Karya and Habco Trans
Can any of the company-specific risk be diversified away by investing in both Bangun Karya and Habco Trans 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 Bangun Karya and Habco Trans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangun Karya Perkasa and Habco Trans Maritima, you can compare the effects of market volatilities on Bangun Karya and Habco Trans 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 Bangun Karya with a short position of Habco Trans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangun Karya and Habco Trans.
Diversification Opportunities for Bangun Karya and Habco Trans
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangun and Habco is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bangun Karya Perkasa and Habco Trans Maritima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Habco Trans Maritima and Bangun Karya 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 Bangun Karya Perkasa are associated (or correlated) with Habco Trans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Habco Trans Maritima has no effect on the direction of Bangun Karya i.e., Bangun Karya and Habco Trans go up and down completely randomly.
Pair Corralation between Bangun Karya and Habco Trans
Assuming the 90 days trading horizon Bangun Karya is expected to generate 1.78 times less return on investment than Habco Trans. In addition to that, Bangun Karya is 1.07 times more volatile than Habco Trans Maritima. It trades about 0.04 of its total potential returns per unit of risk. Habco Trans Maritima is currently generating about 0.08 per unit of volatility. If you would invest 23,200 in Habco Trans Maritima on August 28, 2024 and sell it today you would earn a total of 5,400 from holding Habco Trans Maritima or generate 23.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bangun Karya Perkasa vs. Habco Trans Maritima
Performance |
| Timeline |
| Bangun Karya Perkasa |
| Habco Trans Maritima |
Bangun Karya and Habco Trans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangun Karya and Habco Trans
The main advantage of trading using opposite Bangun Karya and Habco Trans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangun Karya position performs unexpectedly, Habco Trans 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 Habco Trans will offset losses from the drop in Habco Trans' long position.| Bangun Karya vs. Indo Kordsa Tbk | Bangun Karya vs. Wilmar Cahaya Indonesia | Bangun Karya vs. Citra Marga Nusaphala | Bangun Karya vs. Darya Varia Laboratoria 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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