Correlation Between Bukit Asam and Hallador Energy
Can any of the company-specific risk be diversified away by investing in both Bukit Asam and Hallador Energy 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 Hallador Energy 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 Hallador Energy, you can compare the effects of market volatilities on Bukit Asam and Hallador Energy 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 Hallador Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Asam and Hallador Energy.
Diversification Opportunities for Bukit Asam and Hallador Energy
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bukit and Hallador is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Asam Tbk and Hallador Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hallador Energy 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 Hallador Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hallador Energy has no effect on the direction of Bukit Asam i.e., Bukit Asam and Hallador Energy go up and down completely randomly.
Pair Corralation between Bukit Asam and Hallador Energy
Assuming the 90 days horizon Bukit Asam is expected to generate 1.68 times less return on investment than Hallador Energy. But when comparing it to its historical volatility, Bukit Asam Tbk is 1.39 times less risky than Hallador Energy. It trades about 0.04 of its potential returns per unit of risk. Hallador Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 818.00 in Hallador Energy on November 9, 2024 and sell it today you would earn a total of 257.00 from holding Hallador Energy or generate 31.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.4% |
| Values | Daily Returns |
Bukit Asam Tbk vs. Hallador Energy
Performance |
| Timeline |
| Bukit Asam Tbk |
| Hallador Energy |
Bukit Asam and Hallador Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukit Asam and Hallador Energy
The main advantage of trading using opposite Bukit Asam and Hallador Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Asam position performs unexpectedly, Hallador Energy 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 Hallador Energy will offset losses from the drop in Hallador Energy's long position.| Bukit Asam vs. Ihuman Inc | Bukit Asam vs. NorthWestern | Bukit Asam vs. Yuexiu Transport Infrastructure | Bukit Asam vs. Verra Mobility Corp |
| Hallador Energy vs. Natural Resource Partners | Hallador Energy vs. Adaro Energy Tbk | Hallador Energy vs. Alliance Resource Partners | Hallador Energy vs. NACCO Industries |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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