Correlation Between Waskita Beton and Berkah Beton
Can any of the company-specific risk be diversified away by investing in both Waskita Beton 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 Waskita Beton and Berkah Beton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waskita Beton Precast and Berkah Beton Sadaya, you can compare the effects of market volatilities on Waskita Beton 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 Waskita Beton with a short position of Berkah Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waskita Beton and Berkah Beton.
Diversification Opportunities for Waskita Beton and Berkah Beton
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Waskita and Berkah is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Waskita Beton Precast 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 Waskita Beton 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 Waskita Beton Precast 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 Waskita Beton i.e., Waskita Beton and Berkah Beton go up and down completely randomly.
Pair Corralation between Waskita Beton and Berkah Beton
Assuming the 90 days trading horizon Waskita Beton Precast is expected to generate 0.49 times more return on investment than Berkah Beton. However, Waskita Beton Precast is 2.04 times less risky than Berkah Beton. It trades about -0.09 of its potential returns per unit of risk. Berkah Beton Sadaya is currently generating about -0.12 per unit of risk. If you would invest 9,500 in Waskita Beton Precast on August 30, 2024 and sell it today you would lose (7,700) from holding Waskita Beton Precast or give up 81.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Waskita Beton Precast vs. Berkah Beton Sadaya
Performance |
| Timeline |
| Waskita Beton Precast |
| Berkah Beton Sadaya |
Waskita Beton and Berkah Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waskita Beton and Berkah Beton
The main advantage of trading using opposite Waskita Beton and Berkah Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waskita Beton 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.| Waskita Beton vs. Victoria Insurance Tbk | Waskita Beton vs. Steel Pipe Industry | Waskita Beton vs. PT Hatten Bali | Waskita Beton vs. Anabatic Technologies Tbk |
| Berkah Beton vs. Bk Harda Internasional | Berkah Beton vs. Bank Net Indonesia | Berkah Beton vs. Bank Yudha Bhakti | Berkah Beton vs. Medikaloka Hermina PT |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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