Correlation Between Batulicin Nusantara and Surya Biru

Can any of the company-specific risk be diversified away by investing in both Batulicin Nusantara and Surya Biru 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 Batulicin Nusantara and Surya Biru into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Batulicin Nusantara Maritim and Surya Biru Murni, you can compare the effects of market volatilities on Batulicin Nusantara and Surya Biru 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 Batulicin Nusantara with a short position of Surya Biru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batulicin Nusantara and Surya Biru.

Diversification Opportunities for Batulicin Nusantara and Surya Biru

-0.85

Correlation Coefficient

Batulicin Nusantara  Surya Biru

Pay attention - limited upside

The 3 months correlation between Batulicin and Surya is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Batulicin Nusantara Maritim and Surya Biru Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Biru Murni and Batulicin Nusantara 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 Batulicin Nusantara Maritim are associated (or correlated) with Surya Biru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Biru Murni has no effect on the direction of Batulicin Nusantara i.e., Batulicin Nusantara and Surya Biru go up and down completely randomly.

Pair Corralation between Batulicin Nusantara and Surya Biru

Assuming the 90 days trading horizon Batulicin Nusantara Maritim is expected to generate 3.72 times more return on investment than Surya Biru. However, Batulicin Nusantara is 3.72 times more volatile than Surya Biru Murni. It trades about 0.21 of its potential returns per unit of risk. Surya Biru Murni is currently generating about -0.1 per unit of risk. If you would invest  25,400  in Batulicin Nusantara Maritim on October 27, 2024 and sell it today you would earn a total of  15,600  from holding Batulicin Nusantara Maritim or generate 61.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Batulicin Nusantara Maritim  vs.  Surya Biru Murni

Batulicin Nusantara

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Batulicin Nusantara Maritim are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Batulicin Nusantara disclosed solid returns over the last few months and may actually be approaching a breakup point.

Surya Biru Murni

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Surya Biru Murni has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Batulicin Nusantara and Surya Biru

The main advantage of trading using opposite Batulicin Nusantara and Surya Biru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batulicin Nusantara position performs unexpectedly, Surya Biru 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 Surya Biru will offset losses from the drop in Surya Biru's long position.

The idea behind Batulicin Nusantara Maritim and Surya Biru Murni pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.