Correlation Between PT Bumi and ACCSYS TECHPLC
Can any of the company-specific risk be diversified away by investing in both PT Bumi and ACCSYS TECHPLC 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 ACCSYS TECHPLC 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 ACCSYS TECHPLC EO, you can compare the effects of market volatilities on PT Bumi and ACCSYS TECHPLC 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 ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bumi and ACCSYS TECHPLC.
Diversification Opportunities for PT Bumi and ACCSYS TECHPLC
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PJM and ACCSYS is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding PT Bumi Resources and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO 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 ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of PT Bumi i.e., PT Bumi and ACCSYS TECHPLC go up and down completely randomly.
Pair Corralation between PT Bumi and ACCSYS TECHPLC
Assuming the 90 days horizon PT Bumi Resources is expected to generate 2.81 times more return on investment than ACCSYS TECHPLC. However, PT Bumi is 2.81 times more volatile than ACCSYS TECHPLC EO. It trades about 0.08 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about -0.01 per unit of risk. If you would invest 0.70 in PT Bumi Resources on September 3, 2024 and sell it today you would earn a total of 0.10 from holding PT Bumi Resources or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bumi Resources vs. ACCSYS TECHPLC EO
Performance |
| Timeline |
| PT Bumi Resources |
| ACCSYS TECHPLC EO |
PT Bumi and ACCSYS TECHPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bumi and ACCSYS TECHPLC
The main advantage of trading using opposite PT Bumi and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bumi position performs unexpectedly, ACCSYS TECHPLC 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 ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.| PT Bumi vs. National Health Investors | PT Bumi vs. Bumrungrad Hospital Public | PT Bumi vs. SMA Solar Technology | PT Bumi vs. MACOM Technology Solutions |
| ACCSYS TECHPLC vs. West Fraser Timber | ACCSYS TECHPLC vs. UFP Industries | ACCSYS TECHPLC vs. Superior Plus Corp | ACCSYS TECHPLC vs. NMI Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |