Correlation Between PT Bumi and Investor
Can any of the company-specific risk be diversified away by investing in both PT Bumi and Investor 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 Investor 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 Investor AB ser, you can compare the effects of market volatilities on PT Bumi and Investor 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 Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bumi and Investor.
Diversification Opportunities for PT Bumi and Investor
Excellent diversification
The 3 months correlation between PBMRF and Investor is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding PT Bumi Resources and Investor AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor AB ser 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 Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor AB ser has no effect on the direction of PT Bumi i.e., PT Bumi and Investor go up and down completely randomly.
Pair Corralation between PT Bumi and Investor
Assuming the 90 days horizon PT Bumi Resources is expected to under-perform the Investor. In addition to that, PT Bumi is 4.59 times more volatile than Investor AB ser. It trades about 0.0 of its total potential returns per unit of risk. Investor AB ser is currently generating about 0.0 per unit of volatility. If you would invest 2,670 in Investor AB ser on August 24, 2024 and sell it today you would lose (70.00) from holding Investor AB ser or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bumi Resources vs. Investor AB ser
Performance |
| Timeline |
| PT Bumi Resources |
| Investor AB ser |
PT Bumi and Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bumi and Investor
The main advantage of trading using opposite PT Bumi and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bumi position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor's long position.| PT Bumi vs. Alliance Resource Partners | PT Bumi vs. Marvell Technology Group | PT Bumi vs. Fortinet | PT Bumi vs. Granite Construction Incorporated |
| Investor vs. Blackhawk Growth Corp | Investor vs. Mount Logan Capital | Investor vs. Urbana | Investor vs. Guardian Capital Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |