Correlation Between Bekasi Asri and Bukit Darmo
Can any of the company-specific risk be diversified away by investing in both Bekasi Asri and Bukit Darmo 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 Bekasi Asri and Bukit Darmo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bekasi Asri Pemula and Bukit Darmo Property, you can compare the effects of market volatilities on Bekasi Asri and Bukit Darmo 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 Bekasi Asri with a short position of Bukit Darmo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Asri and Bukit Darmo.
Diversification Opportunities for Bekasi Asri and Bukit Darmo
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bekasi and Bukit is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Asri Pemula and Bukit Darmo Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Darmo Property and Bekasi Asri 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 Bekasi Asri Pemula are associated (or correlated) with Bukit Darmo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Darmo Property has no effect on the direction of Bekasi Asri i.e., Bekasi Asri and Bukit Darmo go up and down completely randomly.
Pair Corralation between Bekasi Asri and Bukit Darmo
Assuming the 90 days trading horizon Bekasi Asri Pemula is expected to under-perform the Bukit Darmo. But the stock apears to be less risky and, when comparing its historical volatility, Bekasi Asri Pemula is 1.09 times less risky than Bukit Darmo. The stock trades about -0.02 of its potential returns per unit of risk. The Bukit Darmo Property is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 6,400 in Bukit Darmo Property on August 31, 2024 and sell it today you would lose (1,400) from holding Bukit Darmo Property or give up 21.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bekasi Asri Pemula vs. Bukit Darmo Property
Performance |
| Timeline |
| Bekasi Asri Pemula |
| Bukit Darmo Property |
Bekasi Asri and Bukit Darmo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bekasi Asri and Bukit Darmo
The main advantage of trading using opposite Bekasi Asri and Bukit Darmo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Asri position performs unexpectedly, Bukit Darmo 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 Bukit Darmo will offset losses from the drop in Bukit Darmo's long position.| Bekasi Asri vs. Bukit Darmo Property | Bekasi Asri vs. Perdana Gapura Prima | Bekasi Asri vs. Bhuwanatala Indah Permai | Bekasi Asri vs. Duta Anggada Realty |
| Bukit Darmo vs. Lippo Cikarang Tbk | Bukit Darmo vs. Lippo Karawaci Tbk | Bukit Darmo vs. Intiland Development Tbk | Bukit Darmo vs. Mitra Pinasthika Mustika |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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