Correlation Between Bekasi Fajar and Surya Semesta
Can any of the company-specific risk be diversified away by investing in both Bekasi Fajar and Surya Semesta 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 Surya Semesta 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 Surya Semesta Internusa, you can compare the effects of market volatilities on Bekasi Fajar and Surya Semesta 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 Surya Semesta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Fajar and Surya Semesta.
Diversification Opportunities for Bekasi Fajar and Surya Semesta
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bekasi and Surya is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Fajar Industrial and Surya Semesta Internusa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Semesta Internusa 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 Surya Semesta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Semesta Internusa has no effect on the direction of Bekasi Fajar i.e., Bekasi Fajar and Surya Semesta go up and down completely randomly.
Pair Corralation between Bekasi Fajar and Surya Semesta
Assuming the 90 days trading horizon Bekasi Fajar Industrial is expected to generate 0.81 times more return on investment than Surya Semesta. However, Bekasi Fajar Industrial is 1.24 times less risky than Surya Semesta. It trades about -0.16 of its potential returns per unit of risk. Surya Semesta Internusa is currently generating about -0.26 per unit of risk. If you would invest 12,200 in Bekasi Fajar Industrial on August 28, 2024 and sell it today you would lose (1,700) from holding Bekasi Fajar Industrial or give up 13.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bekasi Fajar Industrial vs. Surya Semesta Internusa
Performance |
| Timeline |
| Bekasi Fajar Industrial |
| Surya Semesta Internusa |
Bekasi Fajar and Surya Semesta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bekasi Fajar and Surya Semesta
The main advantage of trading using opposite Bekasi Fajar and Surya Semesta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Fajar position performs unexpectedly, Surya Semesta 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 Surya Semesta will offset losses from the drop in Surya Semesta'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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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