Correlation Between Bekasi Fajar and PT Homeco
Can any of the company-specific risk be diversified away by investing in both Bekasi Fajar and PT Homeco 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 PT Homeco 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 PT Homeco Victoria, you can compare the effects of market volatilities on Bekasi Fajar and PT Homeco 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 PT Homeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Fajar and PT Homeco.
Diversification Opportunities for Bekasi Fajar and PT Homeco
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bekasi and LIVE is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Fajar Industrial and PT Homeco Victoria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Homeco Victoria 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 PT Homeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Homeco Victoria has no effect on the direction of Bekasi Fajar i.e., Bekasi Fajar and PT Homeco go up and down completely randomly.
Pair Corralation between Bekasi Fajar and PT Homeco
Assuming the 90 days trading horizon Bekasi Fajar Industrial is expected to generate 1.27 times more return on investment than PT Homeco. However, Bekasi Fajar is 1.27 times more volatile than PT Homeco Victoria. It trades about -0.15 of its potential returns per unit of risk. PT Homeco Victoria is currently generating about -0.25 per unit of risk. If you would invest 9,700 in Bekasi Fajar Industrial on November 28, 2024 and sell it today you would lose (600.00) from holding Bekasi Fajar Industrial or give up 6.19% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bekasi Fajar Industrial vs. PT Homeco Victoria
Performance |
Timeline |
Bekasi Fajar Industrial |
PT Homeco Victoria |
Bekasi Fajar and PT Homeco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bekasi Fajar and PT Homeco
The main advantage of trading using opposite Bekasi Fajar and PT Homeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Fajar position performs unexpectedly, PT Homeco 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 PT Homeco will offset losses from the drop in PT Homeco'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 |
PT Homeco vs. Weha Transportasi Indonesia | PT Homeco vs. Humpuss Intermoda Transportasi | PT Homeco vs. Diamond Food Indonesia | PT Homeco vs. Metrodata Electronics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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