Correlation Between Bima Sakti and Karya Bersama
Can any of the company-specific risk be diversified away by investing in both Bima Sakti and Karya Bersama 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 Bima Sakti and Karya Bersama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bima Sakti Pertiwi and Karya Bersama Anugerah, you can compare the effects of market volatilities on Bima Sakti and Karya Bersama 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 Bima Sakti with a short position of Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bima Sakti and Karya Bersama.
Diversification Opportunities for Bima Sakti and Karya Bersama
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bima and Karya is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bima Sakti Pertiwi and Karya Bersama Anugerah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karya Bersama Anugerah and Bima Sakti 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 Bima Sakti Pertiwi are associated (or correlated) with Karya Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karya Bersama Anugerah has no effect on the direction of Bima Sakti i.e., Bima Sakti and Karya Bersama go up and down completely randomly.
Pair Corralation between Bima Sakti and Karya Bersama
Assuming the 90 days trading horizon Bima Sakti Pertiwi is expected to generate 0.36 times more return on investment than Karya Bersama. However, Bima Sakti Pertiwi is 2.75 times less risky than Karya Bersama. It trades about 0.07 of its potential returns per unit of risk. Karya Bersama Anugerah is currently generating about 0.02 per unit of risk. If you would invest 5,200 in Bima Sakti Pertiwi on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Bima Sakti Pertiwi or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bima Sakti Pertiwi vs. Karya Bersama Anugerah
Performance |
| Timeline |
| Bima Sakti Pertiwi |
| Karya Bersama Anugerah |
Bima Sakti and Karya Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bima Sakti and Karya Bersama
The main advantage of trading using opposite Bima Sakti and Karya Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bima Sakti position performs unexpectedly, Karya Bersama 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 Karya Bersama will offset losses from the drop in Karya Bersama's long position.| Bima Sakti vs. Hotel Sahid Jaya | Bima Sakti vs. Surya Citra Media | Bima Sakti vs. PT Homeco Victoria | Bima Sakti vs. Indosterling Technomedia Tbk |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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