Correlation Between Bakrieland Development and Cipta Selera
Can any of the company-specific risk be diversified away by investing in both Bakrieland Development and Cipta Selera 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 Bakrieland Development and Cipta Selera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bakrieland Development Tbk and Cipta Selera Murni, you can compare the effects of market volatilities on Bakrieland Development and Cipta Selera 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 Bakrieland Development with a short position of Cipta Selera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bakrieland Development and Cipta Selera.
Diversification Opportunities for Bakrieland Development and Cipta Selera
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bakrieland and Cipta is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bakrieland Development Tbk and Cipta Selera Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipta Selera Murni and Bakrieland 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 Bakrieland Development Tbk are associated (or correlated) with Cipta Selera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipta Selera Murni has no effect on the direction of Bakrieland Development i.e., Bakrieland Development and Cipta Selera go up and down completely randomly.
Pair Corralation between Bakrieland Development and Cipta Selera
Assuming the 90 days trading horizon Bakrieland Development Tbk is expected to under-perform the Cipta Selera. In addition to that, Bakrieland Development is 2.83 times more volatile than Cipta Selera Murni. It trades about -0.55 of its total potential returns per unit of risk. Cipta Selera Murni is currently generating about 0.3 per unit of volatility. If you would invest 278,000 in Cipta Selera Murni on August 30, 2024 and sell it today you would earn a total of 24,000 from holding Cipta Selera Murni or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bakrieland Development Tbk vs. Cipta Selera Murni
Performance |
| Timeline |
| Bakrieland Development |
| Cipta Selera Murni |
Bakrieland Development and Cipta Selera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bakrieland Development and Cipta Selera
The main advantage of trading using opposite Bakrieland Development and Cipta Selera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bakrieland Development position performs unexpectedly, Cipta Selera 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 Cipta Selera will offset losses from the drop in Cipta Selera's long position.| Bakrieland Development vs. Bakrie Brothers Tbk | Bakrieland Development vs. Bakrie Sumatera Plantations | Bakrieland Development vs. Energi Mega Persada | Bakrieland Development vs. Darma Henwa Tbk |
| Cipta Selera vs. Era Media Sejahtera | Cipta Selera vs. Dharma Polimetal Tbk | Cipta Selera vs. Mahaka Media Tbk | Cipta Selera 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |