Correlation Between Bima Sakti and Pollux Properti
Can any of the company-specific risk be diversified away by investing in both Bima Sakti and Pollux Properti 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 Bima Sakti and Pollux Properti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bima Sakti Pertiwi and Pollux Properti Indonesia, you can compare the effects of market volatilities on Bima Sakti and Pollux Properti 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 Bima Sakti with a short position of Pollux Properti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bima Sakti and Pollux Properti.
Diversification Opportunities for Bima Sakti and Pollux Properti
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bima and Pollux is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bima Sakti Pertiwi and Pollux Properti Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollux Properti Indonesia and Bima Sakti 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 Bima Sakti Pertiwi are associated (or correlated) with Pollux Properti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollux Properti Indonesia has no effect on the direction of Bima Sakti i.e., Bima Sakti and Pollux Properti go up and down completely randomly.
Pair Corralation between Bima Sakti and Pollux Properti
Assuming the 90 days trading horizon Bima Sakti Pertiwi is expected to under-perform the Pollux Properti. In addition to that, Bima Sakti is 3.07 times more volatile than Pollux Properti Indonesia. It trades about -0.04 of its total potential returns per unit of risk. Pollux Properti Indonesia is currently generating about -0.01 per unit of volatility. If you would invest 11,500 in Pollux Properti Indonesia on August 28, 2024 and sell it today you would lose (300.00) from holding Pollux Properti Indonesia or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bima Sakti Pertiwi vs. Pollux Properti Indonesia
Performance |
| Timeline |
| Bima Sakti Pertiwi |
| Pollux Properti Indonesia |
Bima Sakti and Pollux Properti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bima Sakti and Pollux Properti
The main advantage of trading using opposite Bima Sakti and Pollux Properti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bima Sakti position performs unexpectedly, Pollux Properti 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 Pollux Properti will offset losses from the drop in Pollux Properti's long position.| Bima Sakti vs. Indo Acidatama Tbk | Bima Sakti vs. Indorama Synthetics Tbk | Bima Sakti vs. PT UBC Medical | Bima Sakti vs. Capital Financial Indonesia |
| Pollux Properti vs. Transcoal Pacific Tbk | Pollux Properti vs. Medikaloka Hermina PT | Pollux Properti vs. Maha Properti Indonesia | Pollux Properti vs. Jaya Sukses Makmur |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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