Correlation Between ACCSYS TECHPLC and PT Bumi
Can any of the company-specific risk be diversified away by investing in both ACCSYS TECHPLC and PT Bumi 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 ACCSYS TECHPLC and PT Bumi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACCSYS TECHPLC EO and PT Bumi Resources, you can compare the effects of market volatilities on ACCSYS TECHPLC and PT Bumi 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 ACCSYS TECHPLC with a short position of PT Bumi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and PT Bumi.
Diversification Opportunities for ACCSYS TECHPLC and PT Bumi
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACCSYS and PJM is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and PT Bumi Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bumi Resources and ACCSYS TECHPLC 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 ACCSYS TECHPLC EO are associated (or correlated) with PT Bumi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bumi Resources has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and PT Bumi go up and down completely randomly.
Pair Corralation between ACCSYS TECHPLC and PT Bumi
Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to under-perform the PT Bumi. But the stock apears to be less risky and, when comparing its historical volatility, ACCSYS TECHPLC EO is 2.78 times less risky than PT Bumi. The stock trades about -0.03 of its potential returns per unit of risk. The PT Bumi Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.50 in PT Bumi Resources on September 3, 2024 and sell it today you would earn a total of 0.30 from holding PT Bumi Resources or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACCSYS TECHPLC EO vs. PT Bumi Resources
Performance |
| Timeline |
| ACCSYS TECHPLC EO |
| PT Bumi Resources |
ACCSYS TECHPLC and PT Bumi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACCSYS TECHPLC and PT Bumi
The main advantage of trading using opposite ACCSYS TECHPLC and PT Bumi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCSYS TECHPLC position performs unexpectedly, PT Bumi 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 Bumi will offset losses from the drop in PT Bumi's long position.| ACCSYS TECHPLC vs. West Fraser Timber | ACCSYS TECHPLC vs. UFP Industries | ACCSYS TECHPLC vs. Superior Plus Corp | ACCSYS TECHPLC vs. NMI Holdings |
| PT Bumi vs. National Health Investors | PT Bumi vs. Bumrungrad Hospital Public | PT Bumi vs. SMA Solar Technology | PT Bumi vs. MACOM Technology Solutions |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |