Correlation Between Bekasi Fajar and Adi Sarana
Can any of the company-specific risk be diversified away by investing in both Bekasi Fajar and Adi Sarana 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 Fajar and Adi Sarana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bekasi Fajar Industrial and Adi Sarana Armada, you can compare the effects of market volatilities on Bekasi Fajar and Adi Sarana 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 Fajar with a short position of Adi Sarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Fajar and Adi Sarana.
Diversification Opportunities for Bekasi Fajar and Adi Sarana
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bekasi and Adi is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Fajar Industrial and Adi Sarana Armada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adi Sarana Armada and Bekasi Fajar 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 Fajar Industrial are associated (or correlated) with Adi Sarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adi Sarana Armada has no effect on the direction of Bekasi Fajar i.e., Bekasi Fajar and Adi Sarana go up and down completely randomly.
Pair Corralation between Bekasi Fajar and Adi Sarana
Assuming the 90 days trading horizon Bekasi Fajar Industrial is expected to under-perform the Adi Sarana. In addition to that, Bekasi Fajar is 1.29 times more volatile than Adi Sarana Armada. It trades about -0.09 of its total potential returns per unit of risk. Adi Sarana Armada is currently generating about 0.0 per unit of volatility. If you would invest 72,973 in Adi Sarana Armada on August 25, 2024 and sell it today you would lose (973.00) from holding Adi Sarana Armada or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bekasi Fajar Industrial vs. Adi Sarana Armada
Performance |
| Timeline |
| Bekasi Fajar Industrial |
| Adi Sarana Armada |
Bekasi Fajar and Adi Sarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bekasi Fajar and Adi Sarana
The main advantage of trading using opposite Bekasi Fajar and Adi Sarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Fajar position performs unexpectedly, Adi Sarana 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 Adi Sarana will offset losses from the drop in Adi Sarana's long position.| Bekasi Fajar vs. Agung Podomoro Land | Bekasi Fajar vs. Surya Semesta Internusa | Bekasi Fajar vs. Alam Sutera Realty | Bekasi Fajar vs. Bumi Serpong Damai |
| Adi Sarana vs. Surya Esa Perkasa | Adi Sarana vs. Tower Bersama Infrastructure | Adi Sarana vs. Erajaya Swasembada Tbk | Adi Sarana vs. Bekasi Fajar Industrial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |