Correlation Between Bekasi Asri and Forza Land

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

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

Diversification Opportunities for Bekasi Asri and Forza Land

0.0

Correlation Coefficient

Bekasi Asri  Forza Land

Pay attention - limited upside

The 3 months correlation between Bekasi and Forza is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Asri Pemula and Forza Land Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forza Land Indonesia and Bekasi Asri 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 Bekasi Asri Pemula are associated (or correlated) with Forza Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forza Land Indonesia has no effect on the direction of Bekasi Asri i.e., Bekasi Asri and Forza Land go up and down completely randomly.

Pair Corralation between Bekasi Asri and Forza Land

If you would invest  5,000  in Bekasi Asri Pemula on October 25, 2024 and sell it today you would earn a total of  600.00  from holding Bekasi Asri Pemula or generate 12.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bekasi Asri Pemula  vs.  Forza Land Indonesia

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 quite persistent forward-looking signals, Bekasi Asri is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Forza Land Indonesia

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bekasi Asri and Forza Land

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

The idea behind Bekasi Asri Pemula and Forza Land Indonesia 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.