Correlation Between Bukit Uluwatu and Adhi Commuter
Can any of the company-specific risk be diversified away by investing in both Bukit Uluwatu and Adhi Commuter 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 Uluwatu and Adhi Commuter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bukit Uluwatu Villa and Adhi Commuter Properti, you can compare the effects of market volatilities on Bukit Uluwatu and Adhi Commuter 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 Uluwatu with a short position of Adhi Commuter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Uluwatu and Adhi Commuter.
Diversification Opportunities for Bukit Uluwatu and Adhi Commuter
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bukit and Adhi is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Uluwatu Villa and Adhi Commuter Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adhi Commuter Properti and Bukit Uluwatu 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 Uluwatu Villa are associated (or correlated) with Adhi Commuter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adhi Commuter Properti has no effect on the direction of Bukit Uluwatu i.e., Bukit Uluwatu and Adhi Commuter go up and down completely randomly.
Pair Corralation between Bukit Uluwatu and Adhi Commuter
Assuming the 90 days trading horizon Bukit Uluwatu Villa is expected to generate 13.14 times more return on investment than Adhi Commuter. However, Bukit Uluwatu is 13.14 times more volatile than Adhi Commuter Properti. It trades about 0.05 of its potential returns per unit of risk. Adhi Commuter Properti is currently generating about 0.0 per unit of risk. If you would invest 5,400 in Bukit Uluwatu Villa on September 26, 2024 and sell it today you would earn a total of 400.00 from holding Bukit Uluwatu Villa or generate 7.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bukit Uluwatu Villa vs. Adhi Commuter Properti
Performance |
Timeline |
Bukit Uluwatu Villa |
Adhi Commuter Properti |
Bukit Uluwatu and Adhi Commuter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bukit Uluwatu and Adhi Commuter
The main advantage of trading using opposite Bukit Uluwatu and Adhi Commuter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Uluwatu position performs unexpectedly, Adhi Commuter 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 Adhi Commuter will offset losses from the drop in Adhi Commuter's long position.Bukit Uluwatu vs. Pembangunan Jaya Ancol | Bukit Uluwatu vs. Panorama Sentrawisata Tbk | Bukit Uluwatu vs. Sona Topas Tourism | Bukit Uluwatu vs. Millennium Pharmacon International |
Adhi Commuter vs. Jaya Sukses Makmur | Adhi Commuter vs. Hanson International Tbk | Adhi Commuter vs. Pollux Investasi Internasional | Adhi Commuter vs. Modernland Realty Ltd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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