Correlation Between Bumi Serpong and Alam Sutera
Can any of the company-specific risk be diversified away by investing in both Bumi Serpong and Alam Sutera 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 Alam Sutera 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 Alam Sutera Realty, you can compare the effects of market volatilities on Bumi Serpong and Alam Sutera 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 Alam Sutera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumi Serpong and Alam Sutera.
Diversification Opportunities for Bumi Serpong and Alam Sutera
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bumi and Alam is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bumi Serpong Damai and Alam Sutera Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alam Sutera Realty 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 Alam Sutera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alam Sutera Realty has no effect on the direction of Bumi Serpong i.e., Bumi Serpong and Alam Sutera go up and down completely randomly.
Pair Corralation between Bumi Serpong and Alam Sutera
Assuming the 90 days trading horizon Bumi Serpong Damai is expected to generate 0.81 times more return on investment than Alam Sutera. However, Bumi Serpong Damai is 1.23 times less risky than Alam Sutera. It trades about -0.12 of its potential returns per unit of risk. Alam Sutera Realty is currently generating about -0.15 per unit of risk. If you would invest 92,500 in Bumi Serpong Damai on January 18, 2025 and sell it today you would lose (11,500) from holding Bumi Serpong Damai or give up 12.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumi Serpong Damai vs. Alam Sutera Realty
Performance |
| Timeline |
| Bumi Serpong Damai |
| Alam Sutera Realty |
Bumi Serpong and Alam Sutera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumi Serpong and Alam Sutera
The main advantage of trading using opposite Bumi Serpong and Alam Sutera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumi Serpong position performs unexpectedly, Alam Sutera 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 Alam Sutera will offset losses from the drop in Alam Sutera'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 |
| Alam Sutera vs. Bumi Serpong Damai | Alam Sutera vs. Summarecon Agung Tbk | Alam Sutera vs. Lippo Karawaci Tbk | Alam Sutera 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |