Correlation Between Aesler Grup and Bukaka Teknik
Can any of the company-specific risk be diversified away by investing in both Aesler Grup and Bukaka Teknik 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 Aesler Grup and Bukaka Teknik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesler Grup Internasional and Bukaka Teknik Utama, you can compare the effects of market volatilities on Aesler Grup and Bukaka Teknik 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 Aesler Grup with a short position of Bukaka Teknik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesler Grup and Bukaka Teknik.
Diversification Opportunities for Aesler Grup and Bukaka Teknik
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aesler and Bukaka is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Aesler Grup Internasional and Bukaka Teknik Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukaka Teknik Utama and Aesler Grup 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 Aesler Grup Internasional are associated (or correlated) with Bukaka Teknik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukaka Teknik Utama has no effect on the direction of Aesler Grup i.e., Aesler Grup and Bukaka Teknik go up and down completely randomly.
Pair Corralation between Aesler Grup and Bukaka Teknik
Assuming the 90 days trading horizon Aesler Grup Internasional is expected to generate 3.04 times more return on investment than Bukaka Teknik. However, Aesler Grup is 3.04 times more volatile than Bukaka Teknik Utama. It trades about 0.61 of its potential returns per unit of risk. Bukaka Teknik Utama is currently generating about -0.1 per unit of risk. If you would invest 40,000 in Aesler Grup Internasional on October 26, 2024 and sell it today you would earn a total of 141,500 from holding Aesler Grup Internasional or generate 353.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.67% |
| Values | Daily Returns |
Aesler Grup Internasional vs. Bukaka Teknik Utama
Performance |
| Timeline |
| Aesler Grup Internasional |
| Bukaka Teknik Utama |
Aesler Grup and Bukaka Teknik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesler Grup and Bukaka Teknik
The main advantage of trading using opposite Aesler Grup and Bukaka Teknik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesler Grup position performs unexpectedly, Bukaka Teknik 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 Bukaka Teknik will offset losses from the drop in Bukaka Teknik's long position.| Aesler Grup vs. Indo Kordsa Tbk | Aesler Grup vs. Wilmar Cahaya Indonesia | Aesler Grup vs. Citra Marga Nusaphala | Aesler Grup vs. Darya Varia Laboratoria Tbk |
| Bukaka Teknik vs. Indo Kordsa Tbk | Bukaka Teknik vs. Wilmar Cahaya Indonesia | Bukaka Teknik vs. Citra Marga Nusaphala | Bukaka Teknik vs. Darya Varia Laboratoria Tbk |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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