Correlation Between Duta Anggada and Bekasi Asri

Can any of the company-specific risk be diversified away by investing in both Duta Anggada and Bekasi Asri 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 Duta Anggada and Bekasi Asri into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Duta Anggada Realty and Bekasi Asri Pemula, you can compare the effects of market volatilities on Duta Anggada and Bekasi Asri 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 Duta Anggada with a short position of Bekasi Asri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Anggada and Bekasi Asri.

Diversification Opportunities for Duta Anggada and Bekasi Asri

-0.11

Correlation Coefficient

Duta Anggada  Bekasi Asri

Good diversification

The 3 months correlation between Duta and Bekasi is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Duta Anggada Realty and Bekasi Asri Pemula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Asri Pemula and Duta Anggada 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 Duta Anggada Realty are associated (or correlated) with Bekasi Asri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Asri Pemula has no effect on the direction of Duta Anggada i.e., Duta Anggada and Bekasi Asri go up and down completely randomly.

Pair Corralation between Duta Anggada and Bekasi Asri

Assuming the 90 days trading horizon Duta Anggada Realty is expected to generate 3.06 times more return on investment than Bekasi Asri. However, Duta Anggada is 3.06 times more volatile than Bekasi Asri Pemula. It trades about 0.01 of its potential returns per unit of risk. Bekasi Asri Pemula is currently generating about -0.07 per unit of risk. If you would invest  20,400  in Duta Anggada Realty on September 5, 2024 and sell it today you would lose (2,200) from holding Duta Anggada Realty or give up 10.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Duta Anggada Realty  vs.  Bekasi Asri Pemula

Duta Anggada Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Duta Anggada Realty has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Duta Anggada is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Bekasi Asri Pemula

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bekasi Asri Pemula has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Duta Anggada and Bekasi Asri

The main advantage of trading using opposite Duta Anggada and Bekasi Asri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duta Anggada position performs unexpectedly, Bekasi Asri 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 Bekasi Asri will offset losses from the drop in Bekasi Asri's long position.

The idea behind Duta Anggada Realty and Bekasi Asri Pemula pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.