Correlation Between Bangun Karya and PT Klinko
Can any of the company-specific risk be diversified away by investing in both Bangun Karya and PT Klinko 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 PT Klinko 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 PT Klinko Karya, you can compare the effects of market volatilities on Bangun Karya and PT Klinko 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 PT Klinko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangun Karya and PT Klinko.
Diversification Opportunities for Bangun Karya and PT Klinko
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangun and KLIN is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bangun Karya Perkasa and PT Klinko Karya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Klinko Karya 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 PT Klinko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Klinko Karya has no effect on the direction of Bangun Karya i.e., Bangun Karya and PT Klinko go up and down completely randomly.
Pair Corralation between Bangun Karya and PT Klinko
Assuming the 90 days trading horizon Bangun Karya is expected to generate 13.41 times less return on investment than PT Klinko. But when comparing it to its historical volatility, Bangun Karya Perkasa is 2.08 times less risky than PT Klinko. It trades about 0.09 of its potential returns per unit of risk. PT Klinko Karya is currently generating about 0.6 of returns per unit of risk over similar time horizon. If you would invest 11,100 in PT Klinko Karya on August 27, 2024 and sell it today you would earn a total of 8,300 from holding PT Klinko Karya or generate 74.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bangun Karya Perkasa vs. PT Klinko Karya
Performance |
| Timeline |
| Bangun Karya Perkasa |
| PT Klinko Karya |
Bangun Karya and PT Klinko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangun Karya and PT Klinko
The main advantage of trading using opposite Bangun Karya and PT Klinko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangun Karya position performs unexpectedly, PT Klinko 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 PT Klinko will offset losses from the drop in PT Klinko's 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 |
| PT Klinko vs. Bangun Karya Perkasa | PT Klinko vs. PT Kusuma Kemindo | PT Klinko vs. PT Hetzer Medical | PT Klinko vs. PT Rohartindo Nusantara |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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