Correlation Between Bukit Darmo and Bekasi Asri
Can any of the company-specific risk be diversified away by investing in both Bukit Darmo and Bekasi Asri 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 Bukit Darmo and Bekasi Asri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bukit Darmo Property and Bekasi Asri Pemula, you can compare the effects of market volatilities on Bukit Darmo and Bekasi Asri 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 Bukit Darmo with a short position of Bekasi Asri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Darmo and Bekasi Asri.
Diversification Opportunities for Bukit Darmo and Bekasi Asri
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bukit and Bekasi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Darmo Property and Bekasi Asri Pemula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Asri Pemula and Bukit Darmo 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 Bukit Darmo Property are associated (or correlated) with Bekasi Asri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Asri Pemula has no effect on the direction of Bukit Darmo i.e., Bukit Darmo and Bekasi Asri go up and down completely randomly.
Pair Corralation between Bukit Darmo and Bekasi Asri
Assuming the 90 days trading horizon Bukit Darmo Property is expected to generate 0.43 times more return on investment than Bekasi Asri. However, Bukit Darmo Property is 2.31 times less risky than Bekasi Asri. It trades about 0.16 of its potential returns per unit of risk. Bekasi Asri Pemula is currently generating about -0.12 per unit of risk. If you would invest 4,800 in Bukit Darmo Property on August 27, 2024 and sell it today you would earn a total of 200.00 from holding Bukit Darmo Property or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bukit Darmo Property vs. Bekasi Asri Pemula
Performance |
| Timeline |
| Bukit Darmo Property |
| Bekasi Asri Pemula |
Bukit Darmo and Bekasi Asri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukit Darmo and Bekasi Asri
The main advantage of trading using opposite Bukit Darmo and Bekasi Asri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Darmo position performs unexpectedly, Bekasi Asri 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 Bekasi Asri will offset losses from the drop in Bekasi Asri's long position.| Bukit Darmo vs. Bhuwanatala Indah Permai | Bukit Darmo vs. Bekasi Asri Pemula | Bukit Darmo vs. Intiland Development Tbk | Bukit Darmo vs. Perdana Gapura Prima |
| Bekasi Asri vs. Bukit Darmo Property | Bekasi Asri vs. Perdana Gapura Prima | Bekasi Asri vs. Bhuwanatala Indah Permai | Bekasi Asri vs. Duta Anggada Realty |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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