Correlation Between Bakrie Brothers and Bekasi Fajar
Can any of the company-specific risk be diversified away by investing in both Bakrie Brothers and Bekasi Fajar 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 Bakrie Brothers and Bekasi Fajar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bakrie Brothers Tbk and Bekasi Fajar Industrial, you can compare the effects of market volatilities on Bakrie Brothers and Bekasi Fajar 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 Bakrie Brothers with a short position of Bekasi Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakrie Brothers and Bekasi Fajar.
Diversification Opportunities for Bakrie Brothers and Bekasi Fajar
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bakrie and Bekasi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bakrie Brothers Tbk and Bekasi Fajar Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Fajar Industrial and Bakrie Brothers 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 Bakrie Brothers Tbk are associated (or correlated) with Bekasi Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Fajar Industrial has no effect on the direction of Bakrie Brothers i.e., Bakrie Brothers and Bekasi Fajar go up and down completely randomly.
Pair Corralation between Bakrie Brothers and Bekasi Fajar
Assuming the 90 days trading horizon Bakrie Brothers Tbk is expected to generate 1.31 times more return on investment than Bekasi Fajar. However, Bakrie Brothers is 1.31 times more volatile than Bekasi Fajar Industrial. It trades about 0.01 of its potential returns per unit of risk. Bekasi Fajar Industrial is currently generating about -0.15 per unit of risk. If you would invest 3,600 in Bakrie Brothers Tbk on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Bakrie Brothers Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bakrie Brothers Tbk vs. Bekasi Fajar Industrial
Performance |
| Timeline |
| Bakrie Brothers Tbk |
| Bekasi Fajar Industrial |
Bakrie Brothers and Bekasi Fajar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakrie Brothers and Bekasi Fajar
The main advantage of trading using opposite Bakrie Brothers and Bekasi Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakrie Brothers position performs unexpectedly, Bekasi Fajar 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 Fajar will offset losses from the drop in Bekasi Fajar's long position.| Bakrie Brothers vs. Bakrieland Development Tbk | Bakrie Brothers vs. Bakrie Sumatera Plantations | Bakrie Brothers vs. Energi Mega Persada | Bakrie Brothers vs. Darma Henwa Tbk |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |