Correlation Between Pelayaran Nelly and Bali Towerindo
Can any of the company-specific risk be diversified away by investing in both Pelayaran Nelly and Bali Towerindo 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 Pelayaran Nelly and Bali Towerindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pelayaran Nelly Dwi and Bali Towerindo Sentra, you can compare the effects of market volatilities on Pelayaran Nelly and Bali Towerindo 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 Pelayaran Nelly with a short position of Bali Towerindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelayaran Nelly and Bali Towerindo.
Diversification Opportunities for Pelayaran Nelly and Bali Towerindo
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pelayaran and Bali is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Nelly Dwi and Bali Towerindo Sentra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bali Towerindo Sentra and Pelayaran Nelly 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 Pelayaran Nelly Dwi are associated (or correlated) with Bali Towerindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bali Towerindo Sentra has no effect on the direction of Pelayaran Nelly i.e., Pelayaran Nelly and Bali Towerindo go up and down completely randomly.
Pair Corralation between Pelayaran Nelly and Bali Towerindo
Assuming the 90 days trading horizon Pelayaran Nelly is expected to generate 1.41 times less return on investment than Bali Towerindo. But when comparing it to its historical volatility, Pelayaran Nelly Dwi is 1.38 times less risky than Bali Towerindo. It trades about 0.06 of its potential returns per unit of risk. Bali Towerindo Sentra is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 74,586 in Bali Towerindo Sentra on August 24, 2024 and sell it today you would earn a total of 76,914 from holding Bali Towerindo Sentra or generate 103.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Pelayaran Nelly Dwi vs. Bali Towerindo Sentra
Performance |
| Timeline |
| Pelayaran Nelly Dwi |
| Bali Towerindo Sentra |
Pelayaran Nelly and Bali Towerindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pelayaran Nelly and Bali Towerindo
The main advantage of trading using opposite Pelayaran Nelly and Bali Towerindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pelayaran Nelly position performs unexpectedly, Bali Towerindo 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 Bali Towerindo will offset losses from the drop in Bali Towerindo's long position.| Pelayaran Nelly vs. Trans Power Marine | Pelayaran Nelly vs. Pelita Samudera Shipping | Pelayaran Nelly vs. Samudera Indonesia Tbk | Pelayaran Nelly vs. Mitrabahtera Segara Sejati |
| Bali Towerindo vs. Austindo Nusantara Jaya | Bali Towerindo vs. Inti Bangun Sejahtera | Bali Towerindo vs. Bukaka Teknik Utama | Bali Towerindo vs. Blue Bird 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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