Correlation Between Bekasi Asri and Lippo Cikarang
Can any of the company-specific risk be diversified away by investing in both Bekasi Asri and Lippo Cikarang 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 Lippo Cikarang 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 Lippo Cikarang Tbk, you can compare the effects of market volatilities on Bekasi Asri and Lippo Cikarang 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 Lippo Cikarang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Asri and Lippo Cikarang.
Diversification Opportunities for Bekasi Asri and Lippo Cikarang
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bekasi and Lippo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Asri Pemula and Lippo Cikarang Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lippo Cikarang Tbk 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 Lippo Cikarang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lippo Cikarang Tbk has no effect on the direction of Bekasi Asri i.e., Bekasi Asri and Lippo Cikarang go up and down completely randomly.
Pair Corralation between Bekasi Asri and Lippo Cikarang
Assuming the 90 days trading horizon Bekasi Asri Pemula is expected to under-perform the Lippo Cikarang. In addition to that, Bekasi Asri is 1.26 times more volatile than Lippo Cikarang Tbk. It trades about -0.01 of its total potential returns per unit of risk. Lippo Cikarang Tbk is currently generating about -0.02 per unit of volatility. If you would invest 98,500 in Lippo Cikarang Tbk on August 27, 2024 and sell it today you would lose (33,000) from holding Lippo Cikarang Tbk or give up 33.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bekasi Asri Pemula vs. Lippo Cikarang Tbk
Performance |
| Timeline |
| Bekasi Asri Pemula |
| Lippo Cikarang Tbk |
Bekasi Asri and Lippo Cikarang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bekasi Asri and Lippo Cikarang
The main advantage of trading using opposite Bekasi Asri and Lippo Cikarang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Asri position performs unexpectedly, Lippo Cikarang 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 Lippo Cikarang will offset losses from the drop in Lippo Cikarang'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 |
| Lippo Cikarang vs. Lippo Karawaci Tbk | Lippo Cikarang vs. Surya Semesta Internusa | Lippo Cikarang vs. Modernland Realty Ltd | Lippo Cikarang vs. Summarecon Agung 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets |