Correlation Between Bukit Uluwatu and City Retail
Can any of the company-specific risk be diversified away by investing in both Bukit Uluwatu and City Retail 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 City Retail 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 City Retail Developments, you can compare the effects of market volatilities on Bukit Uluwatu and City Retail 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 City Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Uluwatu and City Retail.
Diversification Opportunities for Bukit Uluwatu and City Retail
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bukit and City is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Uluwatu Villa and City Retail Developments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Retail Developments 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 City Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Retail Developments has no effect on the direction of Bukit Uluwatu i.e., Bukit Uluwatu and City Retail go up and down completely randomly.
Pair Corralation between Bukit Uluwatu and City Retail
Assuming the 90 days trading horizon Bukit Uluwatu Villa is expected to generate 5.65 times more return on investment than City Retail. However, Bukit Uluwatu is 5.65 times more volatile than City Retail Developments. It trades about 0.06 of its potential returns per unit of risk. City Retail Developments is currently generating about -0.14 per unit of risk. If you would invest 5,500 in Bukit Uluwatu Villa on September 18, 2024 and sell it today you would earn a total of 700.00 from holding Bukit Uluwatu Villa or generate 12.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bukit Uluwatu Villa vs. City Retail Developments
Performance |
Timeline |
Bukit Uluwatu Villa |
City Retail Developments |
Bukit Uluwatu and City Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bukit Uluwatu and City Retail
The main advantage of trading using opposite Bukit Uluwatu and City Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Uluwatu position performs unexpectedly, City Retail 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 City Retail will offset losses from the drop in City Retail's long position.Bukit Uluwatu vs. Protech Mitra Perkasa | Bukit Uluwatu vs. Envy Technologies Indonesia | Bukit Uluwatu vs. Dharma Polimetal Tbk | Bukit Uluwatu vs. City Retail Developments |
City Retail vs. Ciputra Development Tbk | City Retail vs. Bumi Serpong Damai | City Retail vs. Alam Sutera Realty | City Retail vs. Lippo Karawaci Tbk |
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.
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