Correlation Between Bukit Darmo and Perdana Gapura
Can any of the company-specific risk be diversified away by investing in both Bukit Darmo and Perdana Gapura 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 Perdana Gapura 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 Perdana Gapura Prima, you can compare the effects of market volatilities on Bukit Darmo and Perdana Gapura 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 Perdana Gapura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Darmo and Perdana Gapura.
Diversification Opportunities for Bukit Darmo and Perdana Gapura
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bukit and Perdana is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Darmo Property and Perdana Gapura Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perdana Gapura Prima 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 Perdana Gapura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perdana Gapura Prima has no effect on the direction of Bukit Darmo i.e., Bukit Darmo and Perdana Gapura go up and down completely randomly.
Pair Corralation between Bukit Darmo and Perdana Gapura
Assuming the 90 days trading horizon Bukit Darmo Property is expected to under-perform the Perdana Gapura. In addition to that, Bukit Darmo is 1.9 times more volatile than Perdana Gapura Prima. It trades about -0.02 of its total potential returns per unit of risk. Perdana Gapura Prima is currently generating about 0.01 per unit of volatility. If you would invest 9,716 in Perdana Gapura Prima on August 27, 2024 and sell it today you would lose (216.00) from holding Perdana Gapura Prima or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bukit Darmo Property vs. Perdana Gapura Prima
Performance |
| Timeline |
| Bukit Darmo Property |
| Perdana Gapura Prima |
Bukit Darmo and Perdana Gapura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukit Darmo and Perdana Gapura
The main advantage of trading using opposite Bukit Darmo and Perdana Gapura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Darmo position performs unexpectedly, Perdana Gapura 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 Perdana Gapura will offset losses from the drop in Perdana Gapura'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 |
| Perdana Gapura vs. Bukit Darmo Property | Perdana Gapura vs. Intiland Development Tbk | Perdana Gapura vs. Bekasi Asri Pemula | Perdana Gapura 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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