Correlation Between Bangun Karya and PT Cilacap
Can any of the company-specific risk be diversified away by investing in both Bangun Karya and PT Cilacap 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 Bangun Karya and PT Cilacap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangun Karya Perkasa and PT Cilacap Samudera, you can compare the effects of market volatilities on Bangun Karya and PT Cilacap 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 Bangun Karya with a short position of PT Cilacap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangun Karya and PT Cilacap.
Diversification Opportunities for Bangun Karya and PT Cilacap
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bangun and ASHA is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bangun Karya Perkasa and PT Cilacap Samudera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Cilacap Samudera and Bangun Karya 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 Bangun Karya Perkasa are associated (or correlated) with PT Cilacap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Cilacap Samudera has no effect on the direction of Bangun Karya i.e., Bangun Karya and PT Cilacap go up and down completely randomly.
Pair Corralation between Bangun Karya and PT Cilacap
Assuming the 90 days trading horizon Bangun Karya Perkasa is expected to generate 0.44 times more return on investment than PT Cilacap. However, Bangun Karya Perkasa is 2.28 times less risky than PT Cilacap. It trades about 0.1 of its potential returns per unit of risk. PT Cilacap Samudera is currently generating about 0.0 per unit of risk. If you would invest 5,200 in Bangun Karya Perkasa on December 29, 2024 and sell it today you would earn a total of 700.00 from holding Bangun Karya Perkasa or generate 13.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bangun Karya Perkasa vs. PT Cilacap Samudera
Performance |
Timeline |
Bangun Karya Perkasa |
PT Cilacap Samudera |
Bangun Karya and PT Cilacap Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bangun Karya and PT Cilacap
The main advantage of trading using opposite Bangun Karya and PT Cilacap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangun Karya position performs unexpectedly, PT Cilacap 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 Cilacap will offset losses from the drop in PT Cilacap's long position.Bangun Karya vs. PT Hetzer Medical | Bangun Karya vs. PT Dewi Shri | Bangun Karya vs. PT Sari Kreasi | Bangun Karya vs. Gaya Abadi Sempurna |
PT Cilacap vs. PT Dewi Shri | PT Cilacap vs. Adaro Minerals Indonesia | PT Cilacap vs. Autopedia Sukses Lestari | PT Cilacap vs. Wir Asia 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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