Correlation Between Bukit Asam and Yancoal Australia
Can any of the company-specific risk be diversified away by investing in both Bukit Asam and Yancoal Australia 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 Yancoal Australia 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 Yancoal Australia, you can compare the effects of market volatilities on Bukit Asam and Yancoal Australia 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 Yancoal Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Asam and Yancoal Australia.
Diversification Opportunities for Bukit Asam and Yancoal Australia
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bukit and Yancoal is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Asam Tbk and Yancoal Australia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yancoal Australia 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 Yancoal Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yancoal Australia has no effect on the direction of Bukit Asam i.e., Bukit Asam and Yancoal Australia go up and down completely randomly.
Pair Corralation between Bukit Asam and Yancoal Australia
Assuming the 90 days horizon Bukit Asam Tbk is expected to generate 3.21 times more return on investment than Yancoal Australia. However, Bukit Asam is 3.21 times more volatile than Yancoal Australia. It trades about 0.07 of its potential returns per unit of risk. Yancoal Australia is currently generating about 0.06 per unit of risk. If you would invest 278.00 in Bukit Asam Tbk on August 31, 2024 and sell it today you would earn a total of 191.00 from holding Bukit Asam Tbk or generate 68.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.03% |
| Values | Daily Returns |
Bukit Asam Tbk vs. Yancoal Australia
Performance |
| Timeline |
| Bukit Asam Tbk |
| Yancoal Australia |
Bukit Asam and Yancoal Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukit Asam and Yancoal Australia
The main advantage of trading using opposite Bukit Asam and Yancoal Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Asam position performs unexpectedly, Yancoal Australia 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 Yancoal Australia will offset losses from the drop in Yancoal Australia's long position.| Bukit Asam vs. Tyson Foods | Bukit Asam vs. Freedom Internet Group | Bukit Asam vs. Reservoir Media | Bukit Asam vs. Grupo Televisa SAB |
| Yancoal Australia vs. Legacy Education | Yancoal Australia vs. Apple Inc | Yancoal Australia vs. NVIDIA | Yancoal Australia vs. Microsoft |
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
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |