Correlation Between Total Bangun and Acset Indonusa
Can any of the company-specific risk be diversified away by investing in both Total Bangun and Acset Indonusa 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 Total Bangun and Acset Indonusa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Total Bangun Persada and Acset Indonusa Tbk, you can compare the effects of market volatilities on Total Bangun and Acset Indonusa 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 Total Bangun with a short position of Acset Indonusa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Total Bangun and Acset Indonusa.
Diversification Opportunities for Total Bangun and Acset Indonusa
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Total and Acset is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Total Bangun Persada and Acset Indonusa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acset Indonusa Tbk and Total Bangun 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 Total Bangun Persada are associated (or correlated) with Acset Indonusa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acset Indonusa Tbk has no effect on the direction of Total Bangun i.e., Total Bangun and Acset Indonusa go up and down completely randomly.
Pair Corralation between Total Bangun and Acset Indonusa
Assuming the 90 days trading horizon Total Bangun Persada is expected to under-perform the Acset Indonusa. But the stock apears to be less risky and, when comparing its historical volatility, Total Bangun Persada is 1.73 times less risky than Acset Indonusa. The stock trades about -0.26 of its potential returns per unit of risk. The Acset Indonusa Tbk is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 8,700 in Acset Indonusa Tbk on October 23, 2024 and sell it today you would earn a total of 500.00 from holding Acset Indonusa Tbk or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Total Bangun Persada vs. Acset Indonusa Tbk
Performance |
| Timeline |
| Total Bangun Persada |
| Acset Indonusa Tbk |
Total Bangun and Acset Indonusa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Total Bangun and Acset Indonusa
The main advantage of trading using opposite Total Bangun and Acset Indonusa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Total Bangun position performs unexpectedly, Acset Indonusa 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 Acset Indonusa will offset losses from the drop in Acset Indonusa's long position.| Total Bangun vs. Kawasan Industri Jababeka | Total Bangun vs. Adhi Karya Persero | Total Bangun vs. Ciputra Development Tbk | Total Bangun vs. Solusi Bangun Indonesia |
| Acset Indonusa vs. Bekasi Fajar Industrial | Acset Indonusa vs. Nusa Raya Cipta | Acset Indonusa vs. Wijaya Karya Beton | Acset Indonusa vs. Agung Podomoro Land |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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