Correlation Between RMK Energy and Bintang Samudera
Can any of the company-specific risk be diversified away by investing in both RMK Energy and Bintang Samudera 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 RMK Energy and Bintang Samudera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RMK Energy PT and Bintang Samudera Mandiri, you can compare the effects of market volatilities on RMK Energy and Bintang Samudera 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 RMK Energy with a short position of Bintang Samudera. Check out your portfolio center. Please also check ongoing floating volatility patterns of RMK Energy and Bintang Samudera.
Diversification Opportunities for RMK Energy and Bintang Samudera
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RMK and Bintang is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding RMK Energy PT and Bintang Samudera Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Samudera Mandiri and RMK Energy 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 RMK Energy PT are associated (or correlated) with Bintang Samudera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Samudera Mandiri has no effect on the direction of RMK Energy i.e., RMK Energy and Bintang Samudera go up and down completely randomly.
Pair Corralation between RMK Energy and Bintang Samudera
Assuming the 90 days trading horizon RMK Energy PT is expected to under-perform the Bintang Samudera. But the stock apears to be less risky and, when comparing its historical volatility, RMK Energy PT is 1.74 times less risky than Bintang Samudera. The stock trades about -0.17 of its potential returns per unit of risk. The Bintang Samudera Mandiri is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10,200 in Bintang Samudera Mandiri on August 25, 2024 and sell it today you would earn a total of 300.00 from holding Bintang Samudera Mandiri or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RMK Energy PT vs. Bintang Samudera Mandiri
Performance |
| Timeline |
| RMK Energy PT |
| Bintang Samudera Mandiri |
RMK Energy and Bintang Samudera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RMK Energy and Bintang Samudera
The main advantage of trading using opposite RMK Energy and Bintang Samudera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RMK Energy position performs unexpectedly, Bintang Samudera 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 Bintang Samudera will offset losses from the drop in Bintang Samudera's long position.| RMK Energy vs. Adaro Minerals Indonesia | RMK Energy vs. Prima Andalan Mandiri | RMK Energy vs. Sumber Global Energy | RMK Energy vs. Golden Eagle Energy |
| Bintang Samudera vs. Adaro Minerals Indonesia | Bintang Samudera vs. PT Hasnur Internasional | Bintang Samudera vs. RMK Energy PT | Bintang Samudera vs. Indo Pureco Pratama |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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