Correlation Between Ciputra Development and Bekasi Fajar
Can any of the company-specific risk be diversified away by investing in both Ciputra Development and Bekasi Fajar 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 Ciputra Development and Bekasi Fajar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ciputra Development Tbk and Bekasi Fajar Industrial, you can compare the effects of market volatilities on Ciputra Development and Bekasi Fajar 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 Ciputra Development with a short position of Bekasi Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciputra Development and Bekasi Fajar.
Diversification Opportunities for Ciputra Development and Bekasi Fajar
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ciputra and Bekasi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ciputra Development Tbk and Bekasi Fajar Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Fajar Industrial and Ciputra Development 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 Ciputra Development Tbk are associated (or correlated) with Bekasi Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Fajar Industrial has no effect on the direction of Ciputra Development i.e., Ciputra Development and Bekasi Fajar go up and down completely randomly.
Pair Corralation between Ciputra Development and Bekasi Fajar
Assuming the 90 days trading horizon Ciputra Development Tbk is expected to generate 1.1 times more return on investment than Bekasi Fajar. However, Ciputra Development is 1.1 times more volatile than Bekasi Fajar Industrial. It trades about 0.02 of its potential returns per unit of risk. Bekasi Fajar Industrial is currently generating about -0.07 per unit of risk. If you would invest 103,999 in Ciputra Development Tbk on August 28, 2024 and sell it today you would earn a total of 6,501 from holding Ciputra Development Tbk or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
Ciputra Development Tbk vs. Bekasi Fajar Industrial
Performance |
| Timeline |
| Ciputra Development Tbk |
| Bekasi Fajar Industrial |
Ciputra Development and Bekasi Fajar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciputra Development and Bekasi Fajar
The main advantage of trading using opposite Ciputra Development and Bekasi Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciputra Development position performs unexpectedly, Bekasi Fajar 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 Bekasi Fajar will offset losses from the drop in Bekasi Fajar's long position.| Ciputra Development vs. Summarecon Agung Tbk | Ciputra Development vs. Bumi Serpong Damai | Ciputra Development vs. Adhi Karya Persero | Ciputra Development vs. Wijaya Karya Beton |
| Bekasi Fajar vs. Agung Podomoro Land | Bekasi Fajar vs. Surya Semesta Internusa | Bekasi Fajar vs. Alam Sutera Realty | Bekasi Fajar vs. Bumi Serpong Damai |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |