Correlation Between Total Bangun and Slj Global
Can any of the company-specific risk be diversified away by investing in both Total Bangun and Slj Global 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 Total Bangun and Slj Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Total Bangun Persada and Slj Global Tbk, you can compare the effects of market volatilities on Total Bangun and Slj Global 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 Total Bangun with a short position of Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Total Bangun and Slj Global.
Diversification Opportunities for Total Bangun and Slj Global
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Total and Slj is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Total Bangun Persada and Slj Global Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slj Global Tbk and Total Bangun 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 Total Bangun Persada are associated (or correlated) with Slj Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slj Global Tbk has no effect on the direction of Total Bangun i.e., Total Bangun and Slj Global go up and down completely randomly.
Pair Corralation between Total Bangun and Slj Global
Assuming the 90 days trading horizon Total Bangun Persada is expected to generate 1.63 times more return on investment than Slj Global. However, Total Bangun is 1.63 times more volatile than Slj Global Tbk. It trades about 0.05 of its potential returns per unit of risk. Slj Global Tbk is currently generating about -0.17 per unit of risk. If you would invest 64,000 in Total Bangun Persada on September 2, 2024 and sell it today you would earn a total of 4,500 from holding Total Bangun Persada or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Total Bangun Persada vs. Slj Global Tbk
Performance |
| Timeline |
| Total Bangun Persada |
| Slj Global Tbk |
Total Bangun and Slj Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Total Bangun and Slj Global
The main advantage of trading using opposite Total Bangun and Slj Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Total Bangun position performs unexpectedly, Slj Global 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 Slj Global will offset losses from the drop in Slj Global's long position.| Total Bangun vs. Matahari Department Store | Total Bangun vs. Multi Medika Internasional | Total Bangun vs. Visi Media Asia | Total Bangun vs. Bayan Resources Tbk |
| Slj Global vs. Perusahaan Gas Negara | Slj Global vs. Telkom Indonesia Tbk | Slj Global vs. Mitra Pinasthika Mustika | Slj Global 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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