Correlation Between Roda Vivatex and Bundamedik Tbk
Can any of the company-specific risk be diversified away by investing in both Roda Vivatex and Bundamedik Tbk 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 Roda Vivatex and Bundamedik Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roda Vivatex Tbk and Bundamedik Tbk PT, you can compare the effects of market volatilities on Roda Vivatex and Bundamedik Tbk 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 Roda Vivatex with a short position of Bundamedik Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roda Vivatex and Bundamedik Tbk.
Diversification Opportunities for Roda Vivatex and Bundamedik Tbk
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Roda and Bundamedik is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Roda Vivatex Tbk and Bundamedik Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bundamedik Tbk PT and Roda Vivatex 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 Roda Vivatex Tbk are associated (or correlated) with Bundamedik Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bundamedik Tbk PT has no effect on the direction of Roda Vivatex i.e., Roda Vivatex and Bundamedik Tbk go up and down completely randomly.
Pair Corralation between Roda Vivatex and Bundamedik Tbk
Assuming the 90 days trading horizon Roda Vivatex Tbk is expected to generate 1.37 times more return on investment than Bundamedik Tbk. However, Roda Vivatex is 1.37 times more volatile than Bundamedik Tbk PT. It trades about 0.06 of its potential returns per unit of risk. Bundamedik Tbk PT is currently generating about -0.04 per unit of risk. If you would invest 764,670 in Roda Vivatex Tbk on September 4, 2024 and sell it today you would earn a total of 685,330 from holding Roda Vivatex Tbk or generate 89.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Roda Vivatex Tbk vs. Bundamedik Tbk PT
Performance |
| Timeline |
| Roda Vivatex Tbk |
| Bundamedik Tbk PT |
Roda Vivatex and Bundamedik Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roda Vivatex and Bundamedik Tbk
The main advantage of trading using opposite Roda Vivatex and Bundamedik Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roda Vivatex position performs unexpectedly, Bundamedik Tbk 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 Bundamedik Tbk will offset losses from the drop in Bundamedik Tbk's long position.| Roda Vivatex vs. Mitra Pinasthika Mustika | Roda Vivatex vs. Jakarta Int Hotels | Roda Vivatex vs. Asuransi Harta Aman | Roda Vivatex vs. Indosterling Technomedia Tbk |
| Bundamedik Tbk vs. Medikaloka Hermina PT | Bundamedik Tbk vs. Mitra Keluarga Karyasehat | Bundamedik Tbk vs. Mitra Pinasthika Mustika | Bundamedik Tbk vs. Jakarta Int Hotels |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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