Correlation Between Citra Marga and Bukaka Teknik
Can any of the company-specific risk be diversified away by investing in both Citra Marga and Bukaka Teknik 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 Citra Marga and Bukaka Teknik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Marga Nusaphala and Bukaka Teknik Utama, you can compare the effects of market volatilities on Citra Marga and Bukaka Teknik 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 Citra Marga with a short position of Bukaka Teknik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Marga and Bukaka Teknik.
Diversification Opportunities for Citra Marga and Bukaka Teknik
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citra and Bukaka is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citra Marga Nusaphala and Bukaka Teknik Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukaka Teknik Utama and Citra Marga 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 Citra Marga Nusaphala are associated (or correlated) with Bukaka Teknik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukaka Teknik Utama has no effect on the direction of Citra Marga i.e., Citra Marga and Bukaka Teknik go up and down completely randomly.
Pair Corralation between Citra Marga and Bukaka Teknik
Assuming the 90 days trading horizon Citra Marga Nusaphala is expected to generate 5.7 times more return on investment than Bukaka Teknik. However, Citra Marga is 5.7 times more volatile than Bukaka Teknik Utama. It trades about 0.66 of its potential returns per unit of risk. Bukaka Teknik Utama is currently generating about -0.08 per unit of risk. If you would invest 140,000 in Citra Marga Nusaphala on November 4, 2024 and sell it today you would earn a total of 257,000 from holding Citra Marga Nusaphala or generate 183.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Citra Marga Nusaphala vs. Bukaka Teknik Utama
Performance |
| Timeline |
| Citra Marga Nusaphala |
| Bukaka Teknik Utama |
Citra Marga and Bukaka Teknik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Marga and Bukaka Teknik
The main advantage of trading using opposite Citra Marga and Bukaka Teknik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Marga position performs unexpectedly, Bukaka Teknik 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 Bukaka Teknik will offset losses from the drop in Bukaka Teknik's long position.| Citra Marga vs. Berlian Laju Tanker | Citra Marga vs. Solusi Bangun Indonesia | Citra Marga vs. Kawasan Industri Jababeka | Citra Marga vs. Mnc Investama Tbk |
| Bukaka Teknik vs. Indo Kordsa Tbk | Bukaka Teknik vs. Wilmar Cahaya Indonesia | Bukaka Teknik vs. Citra Marga Nusaphala | Bukaka Teknik vs. Darya Varia Laboratoria 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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