Correlation Between Bangun Karya and PT Sari
Can any of the company-specific risk be diversified away by investing in both Bangun Karya and PT Sari 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 Sari 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 Sari Kreasi, you can compare the effects of market volatilities on Bangun Karya and PT Sari 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 Sari. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangun Karya and PT Sari.
Diversification Opportunities for Bangun Karya and PT Sari
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangun and RAFI is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bangun Karya Perkasa and PT Sari Kreasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sari Kreasi 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 Sari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sari Kreasi has no effect on the direction of Bangun Karya i.e., Bangun Karya and PT Sari go up and down completely randomly.
Pair Corralation between Bangun Karya and PT Sari
Assuming the 90 days trading horizon Bangun Karya Perkasa is expected to generate 1.0 times more return on investment than PT Sari. However, Bangun Karya is 1.0 times more volatile than PT Sari Kreasi. It trades about 0.01 of its potential returns per unit of risk. PT Sari Kreasi is currently generating about 0.01 per unit of risk. If you would invest 5,400 in Bangun Karya Perkasa on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Bangun Karya Perkasa or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangun Karya Perkasa vs. PT Sari Kreasi
Performance |
| Timeline |
| Bangun Karya Perkasa |
| PT Sari Kreasi |
Bangun Karya and PT Sari Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangun Karya and PT Sari
The main advantage of trading using opposite Bangun Karya and PT Sari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangun Karya position performs unexpectedly, PT Sari 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 Sari will offset losses from the drop in PT Sari's long position.| Bangun Karya vs. PT Hetzer Medical | Bangun Karya vs. PT Dewi Shri | Bangun Karya vs. PT Sari Kreasi | Bangun Karya vs. Gaya Abadi Sempurna |
| PT Sari vs. PT Dewi Shri | PT Sari vs. Bangun Karya Perkasa | PT Sari vs. Gaya Abadi Sempurna | PT Sari vs. Habco Trans Maritima |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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