Correlation Between Bumi Resources and PT Anugerah
Can any of the company-specific risk be diversified away by investing in both Bumi Resources and PT Anugerah 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 PT Anugerah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumi Resources Tbk and PT Anugerah Spareparts, you can compare the effects of market volatilities on Bumi Resources and PT Anugerah 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 PT Anugerah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumi Resources and PT Anugerah.
Diversification Opportunities for Bumi Resources and PT Anugerah
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bumi and AEGS is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bumi Resources Tbk and PT Anugerah Spareparts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Anugerah Spareparts 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 Tbk are associated (or correlated) with PT Anugerah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Anugerah Spareparts has no effect on the direction of Bumi Resources i.e., Bumi Resources and PT Anugerah go up and down completely randomly.
Pair Corralation between Bumi Resources and PT Anugerah
Assuming the 90 days trading horizon Bumi Resources is expected to generate 3.06 times less return on investment than PT Anugerah. In addition to that, Bumi Resources is 1.14 times more volatile than PT Anugerah Spareparts. It trades about 0.04 of its total potential returns per unit of risk. PT Anugerah Spareparts is currently generating about 0.13 per unit of volatility. If you would invest 3,100 in PT Anugerah Spareparts on August 30, 2024 and sell it today you would earn a total of 400.00 from holding PT Anugerah Spareparts or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumi Resources Tbk vs. PT Anugerah Spareparts
Performance |
| Timeline |
| Bumi Resources Tbk |
| PT Anugerah Spareparts |
Bumi Resources and PT Anugerah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumi Resources and PT Anugerah
The main advantage of trading using opposite Bumi Resources and PT Anugerah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumi Resources position performs unexpectedly, PT Anugerah 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 PT Anugerah will offset losses from the drop in PT Anugerah's long position.| Bumi Resources vs. Aneka Tambang Persero | Bumi Resources vs. Timah Persero Tbk | Bumi Resources vs. Vale Indonesia Tbk | Bumi Resources vs. Energi Mega Persada |
| PT Anugerah vs. Ace Hardware Indonesia | PT Anugerah vs. Enseval Putra Megatrading | PT Anugerah vs. Bank Ocbc Nisp | PT Anugerah vs. Lippo General Insurance |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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