Correlation Between PT Bumi and Fearless Films
Can any of the company-specific risk be diversified away by investing in both PT Bumi and Fearless Films 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 PT Bumi and Fearless Films into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bumi Resources and Fearless Films, you can compare the effects of market volatilities on PT Bumi and Fearless Films 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 PT Bumi with a short position of Fearless Films. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bumi and Fearless Films.
Diversification Opportunities for PT Bumi and Fearless Films
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PBMRF and Fearless is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding PT Bumi Resources and Fearless Films in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fearless Films and PT Bumi 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 PT Bumi Resources are associated (or correlated) with Fearless Films. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fearless Films has no effect on the direction of PT Bumi i.e., PT Bumi and Fearless Films go up and down completely randomly.
Pair Corralation between PT Bumi and Fearless Films
Assuming the 90 days horizon PT Bumi is expected to generate 1.88 times less return on investment than Fearless Films. But when comparing it to its historical volatility, PT Bumi Resources is 1.57 times less risky than Fearless Films. It trades about 0.06 of its potential returns per unit of risk. Fearless Films is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.03 in Fearless Films on August 30, 2024 and sell it today you would lose (0.03) from holding Fearless Films or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 92.73% |
| Values | Daily Returns |
PT Bumi Resources vs. Fearless Films
Performance |
| Timeline |
| PT Bumi Resources |
| Fearless Films |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Bumi and Fearless Films Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bumi and Fearless Films
The main advantage of trading using opposite PT Bumi and Fearless Films positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bumi position performs unexpectedly, Fearless Films 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 Fearless Films will offset losses from the drop in Fearless Films' long position.| PT Bumi vs. Adaro Energy Tbk | PT Bumi vs. Bukit Asam Tbk | PT Bumi vs. Indo Tambangraya Megah | PT Bumi vs. Yanzhou Coal Mining |
| Fearless Films vs. Sanwire | Fearless Films vs. SNM Gobal Holdings | Fearless Films vs. All For One | Fearless Films vs. Ggtoor Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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