Correlation Between Rukun Raharja and Total Bangun
Can any of the company-specific risk be diversified away by investing in both Rukun Raharja and Total Bangun 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 Rukun Raharja and Total Bangun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rukun Raharja Tbk and Total Bangun Persada, you can compare the effects of market volatilities on Rukun Raharja and Total Bangun 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 Rukun Raharja with a short position of Total Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rukun Raharja and Total Bangun.
Diversification Opportunities for Rukun Raharja and Total Bangun
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rukun and Total is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Rukun Raharja Tbk and Total Bangun Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Bangun Persada and Rukun Raharja 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 Rukun Raharja Tbk are associated (or correlated) with Total Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Bangun Persada has no effect on the direction of Rukun Raharja i.e., Rukun Raharja and Total Bangun go up and down completely randomly.
Pair Corralation between Rukun Raharja and Total Bangun
Assuming the 90 days trading horizon Rukun Raharja Tbk is expected to generate 1.42 times more return on investment than Total Bangun. However, Rukun Raharja is 1.42 times more volatile than Total Bangun Persada. It trades about 0.21 of its potential returns per unit of risk. Total Bangun Persada is currently generating about 0.0 per unit of risk. If you would invest 181,500 in Rukun Raharja Tbk on August 25, 2024 and sell it today you would earn a total of 54,500 from holding Rukun Raharja Tbk or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rukun Raharja Tbk vs. Total Bangun Persada
Performance |
| Timeline |
| Rukun Raharja Tbk |
| Total Bangun Persada |
Rukun Raharja and Total Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rukun Raharja and Total Bangun
The main advantage of trading using opposite Rukun Raharja and Total Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rukun Raharja position performs unexpectedly, Total Bangun 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 Total Bangun will offset losses from the drop in Total Bangun's long position.| Rukun Raharja vs. Petrosea Tbk | Rukun Raharja vs. Harum Energy Tbk | Rukun Raharja vs. Perdana Karya Perkasa | Rukun Raharja vs. Samindo Resources Tbk |
| Total Bangun vs. Samudera Indonesia Tbk | Total Bangun vs. Rukun Raharja Tbk | Total Bangun vs. PT Temas Tbk | Total Bangun vs. Weha Transportasi Indonesia |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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