Correlation Between Berkah Prima and Hartadinata Abadi
Can any of the company-specific risk be diversified away by investing in both Berkah Prima and Hartadinata Abadi 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 Berkah Prima and Hartadinata Abadi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkah Prima Perkasa and Hartadinata Abadi Tbk, you can compare the effects of market volatilities on Berkah Prima and Hartadinata Abadi 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 Berkah Prima with a short position of Hartadinata Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Prima and Hartadinata Abadi.
Diversification Opportunities for Berkah Prima and Hartadinata Abadi
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Berkah and Hartadinata is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Prima Perkasa and Hartadinata Abadi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartadinata Abadi Tbk and Berkah Prima 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 Berkah Prima Perkasa are associated (or correlated) with Hartadinata Abadi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartadinata Abadi Tbk has no effect on the direction of Berkah Prima i.e., Berkah Prima and Hartadinata Abadi go up and down completely randomly.
Pair Corralation between Berkah Prima and Hartadinata Abadi
Assuming the 90 days trading horizon Berkah Prima Perkasa is expected to generate 0.43 times more return on investment than Hartadinata Abadi. However, Berkah Prima Perkasa is 2.35 times less risky than Hartadinata Abadi. It trades about -0.02 of its potential returns per unit of risk. Hartadinata Abadi Tbk is currently generating about -0.04 per unit of risk. If you would invest 34,000 in Berkah Prima Perkasa on September 15, 2024 and sell it today you would lose (600.00) from holding Berkah Prima Perkasa or give up 1.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Berkah Prima Perkasa vs. Hartadinata Abadi Tbk
Performance |
Timeline |
Berkah Prima Perkasa |
Hartadinata Abadi Tbk |
Berkah Prima and Hartadinata Abadi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Berkah Prima and Hartadinata Abadi
The main advantage of trading using opposite Berkah Prima and Hartadinata Abadi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Prima position performs unexpectedly, Hartadinata Abadi 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 Hartadinata Abadi will offset losses from the drop in Hartadinata Abadi's long position.Berkah Prima vs. Communication Cable Systems | Berkah Prima vs. Hensel Davest Indonesia | Berkah Prima vs. Arita Prima Indonesia | Berkah Prima vs. Trisula Textile Industries |
Hartadinata Abadi vs. Pembangunan Graha Lestari | Hartadinata Abadi vs. Pembangunan Jaya Ancol | Hartadinata Abadi vs. Hotel Sahid Jaya | Hartadinata Abadi vs. Mitrabara Adiperdana 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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