Correlation Between PT Multi and Bhuwanatala Indah

Can any of the company-specific risk be diversified away by investing in both PT Multi and Bhuwanatala Indah 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 PT Multi and Bhuwanatala Indah into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Multi Garam and Bhuwanatala Indah Permai, you can compare the effects of market volatilities on PT Multi and Bhuwanatala Indah 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 PT Multi with a short position of Bhuwanatala Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Multi and Bhuwanatala Indah.

Diversification Opportunities for PT Multi and Bhuwanatala Indah

0.0

Correlation Coefficient

PT Multi  Bhuwanatala Indah

Pay attention - limited upside

The 3 months correlation between FOLK and Bhuwanatala is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Multi Garam and Bhuwanatala Indah Permai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhuwanatala Indah Permai and PT Multi 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 PT Multi Garam are associated (or correlated) with Bhuwanatala Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhuwanatala Indah Permai has no effect on the direction of PT Multi i.e., PT Multi and Bhuwanatala Indah go up and down completely randomly.

Pair Corralation between PT Multi and Bhuwanatala Indah

If you would invest  3,200  in Bhuwanatala Indah Permai on December 2, 2024 and sell it today you would earn a total of  0.00  from holding Bhuwanatala Indah Permai or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PT Multi Garam  vs.  Bhuwanatala Indah Permai

PT Multi Garam

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Multi Garam has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, PT Multi is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Bhuwanatala Indah Permai

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bhuwanatala Indah Permai are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Bhuwanatala Indah is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with PT Multi and Bhuwanatala Indah

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

The idea behind PT Multi Garam and Bhuwanatala Indah Permai 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.