Correlation Between Bumi Serpong and Agung Podomoro
Can any of the company-specific risk be diversified away by investing in both Bumi Serpong and Agung Podomoro 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 Serpong and Agung Podomoro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumi Serpong Damai and Agung Podomoro Land, you can compare the effects of market volatilities on Bumi Serpong and Agung Podomoro 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 Serpong with a short position of Agung Podomoro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumi Serpong and Agung Podomoro.
Diversification Opportunities for Bumi Serpong and Agung Podomoro
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bumi and Agung is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bumi Serpong Damai and Agung Podomoro Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agung Podomoro Land and Bumi Serpong 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 Serpong Damai are associated (or correlated) with Agung Podomoro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agung Podomoro Land has no effect on the direction of Bumi Serpong i.e., Bumi Serpong and Agung Podomoro go up and down completely randomly.
Pair Corralation between Bumi Serpong and Agung Podomoro
Assuming the 90 days trading horizon Bumi Serpong Damai is expected to under-perform the Agung Podomoro. But the stock apears to be less risky and, when comparing its historical volatility, Bumi Serpong Damai is 1.11 times less risky than Agung Podomoro. The stock trades about -0.11 of its potential returns per unit of risk. The Agung Podomoro Land is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 11,500 in Agung Podomoro Land on August 24, 2024 and sell it today you would lose (900.00) from holding Agung Podomoro Land or give up 7.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumi Serpong Damai vs. Agung Podomoro Land
Performance |
| Timeline |
| Bumi Serpong Damai |
| Agung Podomoro Land |
Bumi Serpong and Agung Podomoro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumi Serpong and Agung Podomoro
The main advantage of trading using opposite Bumi Serpong and Agung Podomoro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumi Serpong position performs unexpectedly, Agung Podomoro 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 Agung Podomoro will offset losses from the drop in Agung Podomoro's long position.| Bumi Serpong vs. Alam Sutera Realty | Bumi Serpong vs. Ciputra Development Tbk | Bumi Serpong vs. Summarecon Agung Tbk | Bumi Serpong vs. Pakuwon Jati Tbk |
| Agung Podomoro vs. Alam Sutera Realty | Agung Podomoro vs. Bumi Serpong Damai | Agung Podomoro vs. Summarecon Agung Tbk | Agung Podomoro 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |