Correlation Between Bukit Darmo and Sentul City
Can any of the company-specific risk be diversified away by investing in both Bukit Darmo and Sentul City 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 Sentul City 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 Sentul City Tbk, you can compare the effects of market volatilities on Bukit Darmo and Sentul City 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 Sentul City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Darmo and Sentul City.
Diversification Opportunities for Bukit Darmo and Sentul City
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bukit and Sentul is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Darmo Property and Sentul City Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentul City Tbk 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 Sentul City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentul City Tbk has no effect on the direction of Bukit Darmo i.e., Bukit Darmo and Sentul City go up and down completely randomly.
Pair Corralation between Bukit Darmo and Sentul City
Assuming the 90 days trading horizon Bukit Darmo Property is expected to generate 1.32 times more return on investment than Sentul City. However, Bukit Darmo is 1.32 times more volatile than Sentul City Tbk. It trades about 0.1 of its potential returns per unit of risk. Sentul City Tbk is currently generating about 0.09 per unit of risk. If you would invest 4,100 in Bukit Darmo Property on September 2, 2024 and sell it today you would earn a total of 900.00 from holding Bukit Darmo Property or generate 21.95% 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. Sentul City Tbk
Performance |
| Timeline |
| Bukit Darmo Property |
| Sentul City Tbk |
Bukit Darmo and Sentul City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukit Darmo and Sentul City
The main advantage of trading using opposite Bukit Darmo and Sentul City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Darmo position performs unexpectedly, Sentul City 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 Sentul City will offset losses from the drop in Sentul City'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 |
| Sentul City vs. Alam Sutera Realty | Sentul City vs. Kawasan Industri Jababeka | Sentul City vs. Lippo Karawaci Tbk | Sentul City vs. Ciputra Development 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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