Correlation Between Bekasi Fajar and Era Media
Can any of the company-specific risk be diversified away by investing in both Bekasi Fajar and Era Media 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 Era Media 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 Era Media Sejahtera, you can compare the effects of market volatilities on Bekasi Fajar and Era Media 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 Era Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Fajar and Era Media.
Diversification Opportunities for Bekasi Fajar and Era Media
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bekasi and Era is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Fajar Industrial and Era Media Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Media Sejahtera 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 Era Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Media Sejahtera has no effect on the direction of Bekasi Fajar i.e., Bekasi Fajar and Era Media go up and down completely randomly.
Pair Corralation between Bekasi Fajar and Era Media
Assuming the 90 days trading horizon Bekasi Fajar Industrial is expected to under-perform the Era Media. In addition to that, Bekasi Fajar is 1.28 times more volatile than Era Media Sejahtera. It trades about -0.27 of its total potential returns per unit of risk. Era Media Sejahtera is currently generating about -0.05 per unit of volatility. If you would invest 5,600 in Era Media Sejahtera on September 2, 2024 and sell it today you would lose (100.00) from holding Era Media Sejahtera or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bekasi Fajar Industrial vs. Era Media Sejahtera
Performance |
| Timeline |
| Bekasi Fajar Industrial |
| Era Media Sejahtera |
Bekasi Fajar and Era Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bekasi Fajar and Era Media
The main advantage of trading using opposite Bekasi Fajar and Era Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Fajar position performs unexpectedly, Era Media 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 Era Media will offset losses from the drop in Era Media'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 |
| Era Media vs. Bank Central Asia | Era Media vs. Bank Rakyat Indonesia | Era Media vs. Bayan Resources Tbk | Era Media vs. Bank Mandiri Persero |
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 CEOs Directory module to screen CEOs from public companies around the world.
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