Correlation Between Bukit Asam and Solusi Bangun
Can any of the company-specific risk be diversified away by investing in both Bukit Asam and Solusi Bangun 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 Bukit Asam and Solusi Bangun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bukit Asam Tbk and Solusi Bangun Indonesia, you can compare the effects of market volatilities on Bukit Asam and Solusi Bangun 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 Bukit Asam with a short position of Solusi Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Asam and Solusi Bangun.
Diversification Opportunities for Bukit Asam and Solusi Bangun
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bukit and Solusi is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Asam Tbk and Solusi Bangun Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solusi Bangun Indonesia and Bukit Asam 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 Bukit Asam Tbk are associated (or correlated) with Solusi Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solusi Bangun Indonesia has no effect on the direction of Bukit Asam i.e., Bukit Asam and Solusi Bangun go up and down completely randomly.
Pair Corralation between Bukit Asam and Solusi Bangun
Assuming the 90 days trading horizon Bukit Asam Tbk is expected to generate 0.63 times more return on investment than Solusi Bangun. However, Bukit Asam Tbk is 1.6 times less risky than Solusi Bangun. It trades about 0.07 of its potential returns per unit of risk. Solusi Bangun Indonesia is currently generating about -0.11 per unit of risk. If you would invest 209,151 in Bukit Asam Tbk on September 2, 2024 and sell it today you would earn a total of 61,849 from holding Bukit Asam Tbk or generate 29.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bukit Asam Tbk vs. Solusi Bangun Indonesia
Performance |
| Timeline |
| Bukit Asam Tbk |
| Solusi Bangun Indonesia |
Bukit Asam and Solusi Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukit Asam and Solusi Bangun
The main advantage of trading using opposite Bukit Asam and Solusi Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Asam position performs unexpectedly, Solusi Bangun 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 Solusi Bangun will offset losses from the drop in Solusi Bangun's long position.| Bukit Asam vs. Perusahaan Gas Negara | Bukit Asam vs. Indo Tambangraya Megah | Bukit Asam vs. Aneka Tambang Persero | Bukit Asam vs. Adaro Energy Tbk |
| Solusi Bangun vs. Perusahaan Gas Negara | Solusi Bangun vs. Telkom Indonesia Tbk | Solusi Bangun vs. Mitra Pinasthika Mustika | Solusi Bangun vs. Jakarta Int Hotels |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |