Correlation Between PT Pelayaran and Bukit Uluwatu
Can any of the company-specific risk be diversified away by investing in both PT Pelayaran and Bukit Uluwatu 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 Pelayaran and Bukit Uluwatu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Pelayaran Tamarin and Bukit Uluwatu Villa, you can compare the effects of market volatilities on PT Pelayaran and Bukit Uluwatu 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 Pelayaran with a short position of Bukit Uluwatu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Pelayaran and Bukit Uluwatu.
Diversification Opportunities for PT Pelayaran and Bukit Uluwatu
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TAMU and Bukit is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding PT Pelayaran Tamarin and Bukit Uluwatu Villa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Uluwatu Villa and PT Pelayaran 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 Pelayaran Tamarin are associated (or correlated) with Bukit Uluwatu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Uluwatu Villa has no effect on the direction of PT Pelayaran i.e., PT Pelayaran and Bukit Uluwatu go up and down completely randomly.
Pair Corralation between PT Pelayaran and Bukit Uluwatu
Assuming the 90 days trading horizon PT Pelayaran Tamarin is expected to under-perform the Bukit Uluwatu. But the stock apears to be less risky and, when comparing its historical volatility, PT Pelayaran Tamarin is 1.23 times less risky than Bukit Uluwatu. The stock trades about -0.23 of its potential returns per unit of risk. The Bukit Uluwatu Villa is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,500 in Bukit Uluwatu Villa on August 26, 2024 and sell it today you would earn a total of 300.00 from holding Bukit Uluwatu Villa or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Pelayaran Tamarin vs. Bukit Uluwatu Villa
Performance |
| Timeline |
| PT Pelayaran Tamarin |
| Bukit Uluwatu Villa |
PT Pelayaran and Bukit Uluwatu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Pelayaran and Bukit Uluwatu
The main advantage of trading using opposite PT Pelayaran and Bukit Uluwatu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Pelayaran position performs unexpectedly, Bukit Uluwatu 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 Bukit Uluwatu will offset losses from the drop in Bukit Uluwatu's long position.| PT Pelayaran vs. Communication Cable Systems | PT Pelayaran vs. Steel Pipe Industry | PT Pelayaran vs. Bekasi Fajar Industrial | PT Pelayaran vs. Metrodata Electronics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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