Correlation Between Bangun Karya and PT Puri
Can any of the company-specific risk be diversified away by investing in both Bangun Karya and PT Puri 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 Bangun Karya and PT Puri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangun Karya Perkasa and PT Puri Sentul, you can compare the effects of market volatilities on Bangun Karya and PT Puri 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 Bangun Karya with a short position of PT Puri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangun Karya and PT Puri.
Diversification Opportunities for Bangun Karya and PT Puri
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bangun and KDTN is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bangun Karya Perkasa and PT Puri Sentul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Puri Sentul and Bangun Karya 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 Bangun Karya Perkasa are associated (or correlated) with PT Puri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Puri Sentul has no effect on the direction of Bangun Karya i.e., Bangun Karya and PT Puri go up and down completely randomly.
Pair Corralation between Bangun Karya and PT Puri
Assuming the 90 days trading horizon Bangun Karya Perkasa is expected to generate 0.45 times more return on investment than PT Puri. However, Bangun Karya Perkasa is 2.22 times less risky than PT Puri. It trades about -0.04 of its potential returns per unit of risk. PT Puri Sentul is currently generating about -0.14 per unit of risk. If you would invest 5,500 in Bangun Karya Perkasa on September 2, 2024 and sell it today you would lose (100.00) from holding Bangun Karya Perkasa or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangun Karya Perkasa vs. PT Puri Sentul
Performance |
| Timeline |
| Bangun Karya Perkasa |
| PT Puri Sentul |
Bangun Karya and PT Puri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangun Karya and PT Puri
The main advantage of trading using opposite Bangun Karya and PT Puri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangun Karya position performs unexpectedly, PT Puri 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 Puri will offset losses from the drop in PT Puri's long position.| Bangun Karya vs. PT Hetzer Medical | Bangun Karya vs. PT Dewi Shri | Bangun Karya vs. PT Sari Kreasi | Bangun Karya vs. Gaya Abadi Sempurna |
| PT Puri vs. PT Primadaya Plastisindo | PT Puri vs. PT Ketrosden Triasmitra | PT Puri vs. Menthobi Karyatama Raya | PT Puri vs. Jayamas Medica Industri |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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