Correlation Between Minna Padi and Bukaka Teknik
Can any of the company-specific risk be diversified away by investing in both Minna Padi and Bukaka Teknik 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 Minna Padi and Bukaka Teknik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minna Padi Investama and Bukaka Teknik Utama, you can compare the effects of market volatilities on Minna Padi and Bukaka Teknik 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 Minna Padi with a short position of Bukaka Teknik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minna Padi and Bukaka Teknik.
Diversification Opportunities for Minna Padi and Bukaka Teknik
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minna and Bukaka is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Minna Padi Investama and Bukaka Teknik Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukaka Teknik Utama and Minna Padi 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 Minna Padi Investama are associated (or correlated) with Bukaka Teknik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukaka Teknik Utama has no effect on the direction of Minna Padi i.e., Minna Padi and Bukaka Teknik go up and down completely randomly.
Pair Corralation between Minna Padi and Bukaka Teknik
Assuming the 90 days trading horizon Minna Padi Investama is expected to generate 3.77 times more return on investment than Bukaka Teknik. However, Minna Padi is 3.77 times more volatile than Bukaka Teknik Utama. It trades about 0.06 of its potential returns per unit of risk. Bukaka Teknik Utama is currently generating about -0.1 per unit of risk. If you would invest 1,000.00 in Minna Padi Investama on October 26, 2024 and sell it today you would earn a total of 100.00 from holding Minna Padi Investama or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Minna Padi Investama vs. Bukaka Teknik Utama
Performance |
| Timeline |
| Minna Padi Investama |
| Bukaka Teknik Utama |
Minna Padi and Bukaka Teknik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minna Padi and Bukaka Teknik
The main advantage of trading using opposite Minna Padi and Bukaka Teknik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minna Padi position performs unexpectedly, Bukaka Teknik 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 Bukaka Teknik will offset losses from the drop in Bukaka Teknik's long position.| Minna Padi vs. Panca Global Securities | Minna Padi vs. Panin Sekuritas Tbk | Minna Padi vs. Reliance Securities Tbk | Minna Padi vs. Bank Nationalnobu Tbk |
| Bukaka Teknik vs. Indo Kordsa Tbk | Bukaka Teknik vs. Wilmar Cahaya Indonesia | Bukaka Teknik vs. Citra Marga Nusaphala | Bukaka Teknik 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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