Correlation Between Imago Mulia and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both Imago Mulia and Berkah Beton 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 Imago Mulia and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imago Mulia Persada and Berkah Beton Sadaya, you can compare the effects of market volatilities on Imago Mulia and Berkah Beton 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 Imago Mulia with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imago Mulia and Berkah Beton.
Diversification Opportunities for Imago Mulia and Berkah Beton
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Imago and Berkah is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Imago Mulia Persada and Berkah Beton Sadaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkah Beton Sadaya and Imago Mulia 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 Imago Mulia Persada are associated (or correlated) with Berkah Beton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkah Beton Sadaya has no effect on the direction of Imago Mulia i.e., Imago Mulia and Berkah Beton go up and down completely randomly.
Pair Corralation between Imago Mulia and Berkah Beton
Assuming the 90 days trading horizon Imago Mulia Persada is expected to generate 0.52 times more return on investment than Berkah Beton. However, Imago Mulia Persada is 1.91 times less risky than Berkah Beton. It trades about -0.07 of its potential returns per unit of risk. Berkah Beton Sadaya is currently generating about -0.05 per unit of risk. If you would invest 9,100 in Imago Mulia Persada on September 1, 2024 and sell it today you would lose (800.00) from holding Imago Mulia Persada or give up 8.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Imago Mulia Persada vs. Berkah Beton Sadaya
Performance |
| Timeline |
| Imago Mulia Persada |
| Berkah Beton Sadaya |
Imago Mulia and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imago Mulia and Berkah Beton
The main advantage of trading using opposite Imago Mulia and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imago Mulia position performs unexpectedly, Berkah Beton 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 Berkah Beton will offset losses from the drop in Berkah Beton's long position.| Imago Mulia vs. Panca Anugrah Wisesa | Imago Mulia vs. PT Sunter Lakeside | Imago Mulia vs. Nusa Palapa Gemilang | Imago Mulia vs. Ulima Nitra PT |
| Berkah Beton vs. PT Indonesia Kendaraan | Berkah Beton vs. Wijaya Karya Bangunan | Berkah Beton vs. J Resources Asia | Berkah Beton vs. Steel Pipe Industry |
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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