Correlation Between Slj Global and Bhuwanatala Indah
Can any of the company-specific risk be diversified away by investing in both Slj Global and Bhuwanatala Indah 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 Slj Global and Bhuwanatala Indah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slj Global Tbk and Bhuwanatala Indah Permai, you can compare the effects of market volatilities on Slj Global and Bhuwanatala Indah 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 Slj Global with a short position of Bhuwanatala Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slj Global and Bhuwanatala Indah.
Diversification Opportunities for Slj Global and Bhuwanatala Indah
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Slj and Bhuwanatala is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Slj Global Tbk and Bhuwanatala Indah Permai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhuwanatala Indah Permai and Slj Global 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 Slj Global Tbk are associated (or correlated) with Bhuwanatala Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhuwanatala Indah Permai has no effect on the direction of Slj Global i.e., Slj Global and Bhuwanatala Indah go up and down completely randomly.
Pair Corralation between Slj Global and Bhuwanatala Indah
Assuming the 90 days trading horizon Slj Global Tbk is expected to under-perform the Bhuwanatala Indah. But the stock apears to be less risky and, when comparing its historical volatility, Slj Global Tbk is 1.12 times less risky than Bhuwanatala Indah. The stock trades about -0.17 of its potential returns per unit of risk. The Bhuwanatala Indah Permai is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,000 in Bhuwanatala Indah Permai on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Bhuwanatala Indah Permai or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slj Global Tbk vs. Bhuwanatala Indah Permai
Performance |
| Timeline |
| Slj Global Tbk |
| Bhuwanatala Indah Permai |
Slj Global and Bhuwanatala Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slj Global and Bhuwanatala Indah
The main advantage of trading using opposite Slj Global and Bhuwanatala Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slj Global position performs unexpectedly, Bhuwanatala Indah 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 Bhuwanatala Indah will offset losses from the drop in Bhuwanatala Indah's long position.| Slj Global vs. Perusahaan Gas Negara | Slj Global vs. Telkom Indonesia Tbk | Slj Global vs. Mitra Pinasthika Mustika | Slj Global vs. Jakarta Int Hotels |
| Bhuwanatala Indah vs. Lippo Cikarang Tbk | Bhuwanatala Indah vs. Lippo Karawaci Tbk | Bhuwanatala Indah vs. Mitra Pinasthika Mustika | Bhuwanatala Indah 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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