Correlation Between Bumi Resources and Kresna Graha
Can any of the company-specific risk be diversified away by investing in both Bumi Resources and Kresna Graha 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 Bumi Resources and Kresna Graha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumi Resources Minerals and Kresna Graha Investama, you can compare the effects of market volatilities on Bumi Resources and Kresna Graha 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 Bumi Resources with a short position of Kresna Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumi Resources and Kresna Graha.
Diversification Opportunities for Bumi Resources and Kresna Graha
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumi and Kresna is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bumi Resources Minerals and Kresna Graha Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kresna Graha Investama and Bumi Resources 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 Bumi Resources Minerals are associated (or correlated) with Kresna Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kresna Graha Investama has no effect on the direction of Bumi Resources i.e., Bumi Resources and Kresna Graha go up and down completely randomly.
Pair Corralation between Bumi Resources and Kresna Graha
Assuming the 90 days trading horizon Bumi Resources Minerals is expected to generate 0.76 times more return on investment than Kresna Graha. However, Bumi Resources Minerals is 1.32 times less risky than Kresna Graha. It trades about 0.1 of its potential returns per unit of risk. Kresna Graha Investama is currently generating about -0.05 per unit of risk. If you would invest 37,800 in Bumi Resources Minerals on September 2, 2024 and sell it today you would earn a total of 3,600 from holding Bumi Resources Minerals or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumi Resources Minerals vs. Kresna Graha Investama
Performance |
| Timeline |
| Bumi Resources Minerals |
| Kresna Graha Investama |
Bumi Resources and Kresna Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumi Resources and Kresna Graha
The main advantage of trading using opposite Bumi Resources and Kresna Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumi Resources position performs unexpectedly, Kresna Graha 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 Kresna Graha will offset losses from the drop in Kresna Graha's long position.| Bumi Resources vs. Energi Mega Persada | Bumi Resources vs. Harum Energy Tbk | Bumi Resources vs. Delta Dunia Makmur | Bumi Resources vs. Benakat Petroleum Energy |
| Kresna Graha vs. Ace Hardware Indonesia | Kresna Graha vs. Merdeka Copper Gold | Kresna Graha vs. Mitra Pinasthika Mustika | Kresna Graha vs. Jakarta Int Hotels |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |