Correlation Between Bekasi Fajar and DMS Propertindo
Can any of the company-specific risk be diversified away by investing in both Bekasi Fajar and DMS Propertindo 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 DMS Propertindo 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 DMS Propertindo Tbk, you can compare the effects of market volatilities on Bekasi Fajar and DMS Propertindo 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 DMS Propertindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Fajar and DMS Propertindo.
Diversification Opportunities for Bekasi Fajar and DMS Propertindo
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bekasi and DMS is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Fajar Industrial and DMS Propertindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DMS Propertindo Tbk 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 DMS Propertindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DMS Propertindo Tbk has no effect on the direction of Bekasi Fajar i.e., Bekasi Fajar and DMS Propertindo go up and down completely randomly.
Pair Corralation between Bekasi Fajar and DMS Propertindo
Assuming the 90 days trading horizon Bekasi Fajar Industrial is expected to generate 0.35 times more return on investment than DMS Propertindo. However, Bekasi Fajar Industrial is 2.86 times less risky than DMS Propertindo. It trades about 0.01 of its potential returns per unit of risk. DMS Propertindo Tbk is currently generating about -0.01 per unit of risk. If you would invest 10,600 in Bekasi Fajar Industrial on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Bekasi Fajar Industrial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bekasi Fajar Industrial vs. DMS Propertindo Tbk
Performance |
| Timeline |
| Bekasi Fajar Industrial |
| DMS Propertindo Tbk |
Bekasi Fajar and DMS Propertindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bekasi Fajar and DMS Propertindo
The main advantage of trading using opposite Bekasi Fajar and DMS Propertindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Fajar position performs unexpectedly, DMS Propertindo 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 DMS Propertindo will offset losses from the drop in DMS Propertindo'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 |
| DMS Propertindo vs. Karya Bersama Anugerah | DMS Propertindo vs. Andalan Sakti Primaindo | DMS Propertindo vs. Perintis Triniti Properti | DMS Propertindo vs. Repower Asia Indonesia |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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