Correlation Between Modern Internasional and Bukaka Teknik
Can any of the company-specific risk be diversified away by investing in both Modern Internasional 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 Modern Internasional and Bukaka Teknik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modern Internasional Tbk and Bukaka Teknik Utama, you can compare the effects of market volatilities on Modern Internasional 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 Modern Internasional with a short position of Bukaka Teknik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modern Internasional and Bukaka Teknik.
Diversification Opportunities for Modern Internasional and Bukaka Teknik
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Modern and Bukaka is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Modern Internasional Tbk 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 Modern Internasional 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 Modern Internasional Tbk 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 Modern Internasional i.e., Modern Internasional and Bukaka Teknik go up and down completely randomly.
Pair Corralation between Modern Internasional and Bukaka Teknik
Assuming the 90 days trading horizon Modern Internasional Tbk is expected to generate 6.47 times more return on investment than Bukaka Teknik. However, Modern Internasional is 6.47 times more volatile than Bukaka Teknik Utama. It trades about 0.05 of its potential returns per unit of risk. Bukaka Teknik Utama is currently generating about -0.1 per unit of risk. If you would invest 800.00 in Modern Internasional Tbk on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Modern Internasional Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modern Internasional Tbk vs. Bukaka Teknik Utama
Performance |
| Timeline |
| Modern Internasional Tbk |
| Bukaka Teknik Utama |
Modern Internasional and Bukaka Teknik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modern Internasional and Bukaka Teknik
The main advantage of trading using opposite Modern Internasional and Bukaka Teknik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modern Internasional 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.| Modern Internasional vs. Trinitan Metals and | Modern Internasional vs. Weha Transportasi Indonesia | Modern Internasional vs. Metrodata Electronics Tbk | Modern Internasional vs. Wintermar Offshore Marine |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |