Correlation Between PT Buana and Sunson Textile
Can any of the company-specific risk be diversified away by investing in both PT Buana and Sunson Textile 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 PT Buana and Sunson Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Buana Artha and Sunson Textile Manufacturer, you can compare the effects of market volatilities on PT Buana and Sunson Textile 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 PT Buana with a short position of Sunson Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Buana and Sunson Textile.
Diversification Opportunities for PT Buana and Sunson Textile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STAR and Sunson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Buana Artha and Sunson Textile Manufacturer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunson Textile Manuf and PT Buana 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 PT Buana Artha are associated (or correlated) with Sunson Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunson Textile Manuf has no effect on the direction of PT Buana i.e., PT Buana and Sunson Textile go up and down completely randomly.
Pair Corralation between PT Buana and Sunson Textile
If you would invest 5,000 in PT Buana Artha on December 1, 2024 and sell it today you would earn a total of 0.00 from holding PT Buana Artha or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Buana Artha vs. Sunson Textile Manufacturer
Performance |
| Timeline |
| PT Buana Artha |
| Sunson Textile Manuf |
PT Buana and Sunson Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Buana and Sunson Textile
The main advantage of trading using opposite PT Buana and Sunson Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Buana position performs unexpectedly, Sunson Textile 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 Sunson Textile will offset losses from the drop in Sunson Textile's long position.| PT Buana vs. Trisula International Tbk | PT Buana vs. Ricky Putra Globalindo | PT Buana vs. Sunson Textile Manufacturer | PT Buana vs. Sejahteraraya Anugrahjaya 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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