Correlation Between Ulima Nitra and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both Ulima Nitra and Berkah Beton 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 Ulima Nitra and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ulima Nitra PT and Berkah Beton Sadaya, you can compare the effects of market volatilities on Ulima Nitra and Berkah Beton 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 Ulima Nitra with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ulima Nitra and Berkah Beton.
Diversification Opportunities for Ulima Nitra and Berkah Beton
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ulima and Berkah is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ulima Nitra PT and Berkah Beton Sadaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkah Beton Sadaya and Ulima Nitra 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 Ulima Nitra PT are associated (or correlated) with Berkah Beton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkah Beton Sadaya has no effect on the direction of Ulima Nitra i.e., Ulima Nitra and Berkah Beton go up and down completely randomly.
Pair Corralation between Ulima Nitra and Berkah Beton
Assuming the 90 days trading horizon Ulima Nitra PT is expected to generate 0.24 times more return on investment than Berkah Beton. However, Ulima Nitra PT is 4.24 times less risky than Berkah Beton. It trades about 0.54 of its potential returns per unit of risk. Berkah Beton Sadaya is currently generating about -0.05 per unit of risk. If you would invest 54,000 in Ulima Nitra PT on September 1, 2024 and sell it today you would earn a total of 15,000 from holding Ulima Nitra PT or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ulima Nitra PT vs. Berkah Beton Sadaya
Performance |
| Timeline |
| Ulima Nitra PT |
| Berkah Beton Sadaya |
Ulima Nitra and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ulima Nitra and Berkah Beton
The main advantage of trading using opposite Ulima Nitra and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ulima Nitra position performs unexpectedly, Berkah Beton 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 Berkah Beton will offset losses from the drop in Berkah Beton's long position.| Ulima Nitra vs. Bank Artos Indonesia | Ulima Nitra vs. GoTo Gojek Tokopedia | Ulima Nitra vs. Elang Mahkota Teknologi | Ulima Nitra vs. PT Bukalapak |
| Berkah Beton vs. PT Indonesia Kendaraan | Berkah Beton vs. Wijaya Karya Bangunan | Berkah Beton vs. J Resources Asia | Berkah Beton vs. Steel Pipe Industry |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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