Correlation Between Bakrie Brothers and Delta Dunia
Can any of the company-specific risk be diversified away by investing in both Bakrie Brothers and Delta Dunia 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 Delta Dunia 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 Delta Dunia Makmur, you can compare the effects of market volatilities on Bakrie Brothers and Delta Dunia 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 Delta Dunia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakrie Brothers and Delta Dunia.
Diversification Opportunities for Bakrie Brothers and Delta Dunia
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bakrie and Delta is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bakrie Brothers Tbk and Delta Dunia Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Dunia Makmur 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 Delta Dunia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Dunia Makmur has no effect on the direction of Bakrie Brothers i.e., Bakrie Brothers and Delta Dunia go up and down completely randomly.
Pair Corralation between Bakrie Brothers and Delta Dunia
Assuming the 90 days trading horizon Bakrie Brothers Tbk is expected to generate 2.16 times more return on investment than Delta Dunia. However, Bakrie Brothers is 2.16 times more volatile than Delta Dunia Makmur. It trades about 0.08 of its potential returns per unit of risk. Delta Dunia Makmur is currently generating about -0.13 per unit of risk. If you would invest 4,500 in Bakrie Brothers Tbk on August 24, 2024 and sell it today you would earn a total of 300.00 from holding Bakrie Brothers Tbk or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bakrie Brothers Tbk vs. Delta Dunia Makmur
Performance |
| Timeline |
| Bakrie Brothers Tbk |
| Delta Dunia Makmur |
Bakrie Brothers and Delta Dunia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakrie Brothers and Delta Dunia
The main advantage of trading using opposite Bakrie Brothers and Delta Dunia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakrie Brothers position performs unexpectedly, Delta Dunia 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 Delta Dunia will offset losses from the drop in Delta Dunia's long position.| Bakrie Brothers vs. Samudera Indonesia Tbk | Bakrie Brothers vs. Steady Safe TBK | Bakrie Brothers vs. Rukun Raharja Tbk | Bakrie Brothers vs. PT Temas Tbk |
| Delta Dunia vs. Petrosea Tbk | Delta Dunia vs. Harum Energy Tbk | Delta Dunia vs. Perdana Karya Perkasa | Delta Dunia vs. Samindo Resources 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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