Correlation Between Aesler Grup and Total Bangun
Can any of the company-specific risk be diversified away by investing in both Aesler Grup and Total 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 Aesler Grup and Total Bangun 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 Total Bangun Persada, you can compare the effects of market volatilities on Aesler Grup and Total 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 Aesler Grup with a short position of Total Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesler Grup and Total Bangun.
Diversification Opportunities for Aesler Grup and Total Bangun
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aesler and Total is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aesler Grup Internasional and Total Bangun Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Bangun Persada 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 Total Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Bangun Persada has no effect on the direction of Aesler Grup i.e., Aesler Grup and Total Bangun go up and down completely randomly.
Pair Corralation between Aesler Grup and Total Bangun
Assuming the 90 days trading horizon Aesler Grup Internasional is expected to generate 3.78 times more return on investment than Total Bangun. However, Aesler Grup is 3.78 times more volatile than Total Bangun Persada. It trades about 0.65 of its potential returns per unit of risk. Total Bangun Persada is currently generating about -0.16 per unit of risk. If you would invest 63,500 in Aesler Grup Internasional on November 3, 2024 and sell it today you would earn a total of 118,000 from holding Aesler Grup Internasional or generate 185.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Aesler Grup Internasional vs. Total Bangun Persada
Performance |
| Timeline |
| Aesler Grup Internasional |
| Total Bangun Persada |
Aesler Grup and Total Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesler Grup and Total Bangun
The main advantage of trading using opposite Aesler Grup and Total Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesler Grup position performs unexpectedly, Total 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 Total Bangun will offset losses from the drop in Total Bangun's long position.| Aesler Grup vs. Indo Acidatama Tbk | Aesler Grup vs. Dharma Polimetal Tbk | Aesler Grup vs. Humpuss Intermoda Transportasi | Aesler Grup vs. Hotel Sahid Jaya |
| Total Bangun vs. Kawasan Industri Jababeka | Total Bangun vs. Adhi Karya Persero | Total Bangun vs. Ciputra Development Tbk | Total Bangun vs. Solusi Bangun Indonesia |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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