Correlation Between Voksel Electric and PT Buana
Can any of the company-specific risk be diversified away by investing in both Voksel Electric and PT Buana 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 Voksel Electric and PT Buana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voksel Electric Tbk and PT Buana Artha, you can compare the effects of market volatilities on Voksel Electric and PT Buana 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 Voksel Electric with a short position of PT Buana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voksel Electric and PT Buana.
Diversification Opportunities for Voksel Electric and PT Buana
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voksel and STAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voksel Electric Tbk and PT Buana Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Buana Artha and Voksel Electric 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 Voksel Electric Tbk are associated (or correlated) with PT Buana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Buana Artha has no effect on the direction of Voksel Electric i.e., Voksel Electric and PT Buana go up and down completely randomly.
Pair Corralation between Voksel Electric and PT Buana
Assuming the 90 days trading horizon Voksel Electric Tbk is expected to generate 6.66 times more return on investment than PT Buana. However, Voksel Electric is 6.66 times more volatile than PT Buana Artha. It trades about 0.1 of its potential returns per unit of risk. PT Buana Artha is currently generating about 0.0 per unit of risk. If you would invest 18,000 in Voksel Electric Tbk on September 3, 2024 and sell it today you would earn a total of 14,400 from holding Voksel Electric Tbk or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voksel Electric Tbk vs. PT Buana Artha
Performance |
| Timeline |
| Voksel Electric Tbk |
| PT Buana Artha |
Voksel Electric and PT Buana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voksel Electric and PT Buana
The main advantage of trading using opposite Voksel Electric and PT Buana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voksel Electric position performs unexpectedly, PT Buana 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 PT Buana will offset losses from the drop in PT Buana's long position.| Voksel Electric vs. Supreme Cable Manufacturing | Voksel Electric vs. Kabelindo Murni Tbk | Voksel Electric vs. Tifico Fiber Indonesia | Voksel Electric vs. Trias Sentosa Tbk |
| PT Buana vs. Trisula International Tbk | PT Buana vs. Ricky Putra Globalindo | PT Buana vs. Sunson Textile Manufacturer | PT Buana vs. Sejahteraraya Anugrahjaya Tbk |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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