Correlation Between Visi Media and Bayan Resources
Can any of the company-specific risk be diversified away by investing in both Visi Media and Bayan Resources 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 Visi Media and Bayan Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visi Media Asia and Bayan Resources Tbk, you can compare the effects of market volatilities on Visi Media and Bayan Resources 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 Visi Media with a short position of Bayan Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visi Media and Bayan Resources.
Diversification Opportunities for Visi Media and Bayan Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visi and Bayan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visi Media Asia and Bayan Resources Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayan Resources Tbk and Visi Media 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 Visi Media Asia are associated (or correlated) with Bayan Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayan Resources Tbk has no effect on the direction of Visi Media i.e., Visi Media and Bayan Resources go up and down completely randomly.
Pair Corralation between Visi Media and Bayan Resources
If you would invest 1,722,500 in Bayan Resources Tbk on September 2, 2024 and sell it today you would earn a total of 235,000 from holding Bayan Resources Tbk or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Visi Media Asia vs. Bayan Resources Tbk
Performance |
| Timeline |
| Visi Media Asia |
| Bayan Resources Tbk |
Visi Media and Bayan Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visi Media and Bayan Resources
The main advantage of trading using opposite Visi Media and Bayan Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visi Media position performs unexpectedly, Bayan Resources 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 Bayan Resources will offset losses from the drop in Bayan Resources' long position.| Visi Media vs. Surya Semesta Internusa | Visi Media vs. Bumi Resources Minerals | Visi Media vs. Multipolar Tbk | Visi Media vs. Surya Citra Media |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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