Correlation Between Puradelta Lestari and Bekasi Fajar
Can any of the company-specific risk be diversified away by investing in both Puradelta Lestari 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 Puradelta Lestari and Bekasi Fajar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puradelta Lestari PT and Bekasi Fajar Industrial, you can compare the effects of market volatilities on Puradelta Lestari 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 Puradelta Lestari with a short position of Bekasi Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puradelta Lestari and Bekasi Fajar.
Diversification Opportunities for Puradelta Lestari and Bekasi Fajar
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Puradelta and Bekasi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Puradelta Lestari PT 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 Puradelta Lestari 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 Puradelta Lestari PT 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 Puradelta Lestari i.e., Puradelta Lestari and Bekasi Fajar go up and down completely randomly.
Pair Corralation between Puradelta Lestari and Bekasi Fajar
Assuming the 90 days trading horizon Puradelta Lestari PT is expected to generate 0.46 times more return on investment than Bekasi Fajar. However, Puradelta Lestari PT is 2.16 times less risky than Bekasi Fajar. It trades about 0.03 of its potential returns per unit of risk. Bekasi Fajar Industrial is currently generating about -0.02 per unit of risk. If you would invest 13,932 in Puradelta Lestari PT on September 3, 2024 and sell it today you would earn a total of 1,768 from holding Puradelta Lestari PT or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Puradelta Lestari PT vs. Bekasi Fajar Industrial
Performance |
| Timeline |
| Puradelta Lestari |
| Bekasi Fajar Industrial |
Puradelta Lestari and Bekasi Fajar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puradelta Lestari and Bekasi Fajar
The main advantage of trading using opposite Puradelta Lestari and Bekasi Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puradelta Lestari 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.| Puradelta Lestari vs. Pakuwon Jati Tbk | Puradelta Lestari vs. Sido Muncul PT | Puradelta Lestari vs. Bekasi Fajar Industrial | Puradelta Lestari vs. Bank Pembangunan Timur |
| Bekasi Fajar vs. Mitra Pinasthika Mustika | Bekasi Fajar vs. Jakarta Int Hotels | Bekasi Fajar vs. Asuransi Harta Aman | Bekasi Fajar vs. Indosterling Technomedia 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |