Correlation Between Bekasi Fajar and Mega Manunggal
Can any of the company-specific risk be diversified away by investing in both Bekasi Fajar and Mega Manunggal 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 Fajar and Mega Manunggal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bekasi Fajar Industrial and Mega Manunggal Property, you can compare the effects of market volatilities on Bekasi Fajar and Mega Manunggal 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 Fajar with a short position of Mega Manunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Fajar and Mega Manunggal.
Diversification Opportunities for Bekasi Fajar and Mega Manunggal
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bekasi and Mega is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Fajar Industrial and Mega Manunggal Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Manunggal Property and Bekasi Fajar 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 Fajar Industrial are associated (or correlated) with Mega Manunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Manunggal Property has no effect on the direction of Bekasi Fajar i.e., Bekasi Fajar and Mega Manunggal go up and down completely randomly.
Pair Corralation between Bekasi Fajar and Mega Manunggal
Assuming the 90 days trading horizon Bekasi Fajar Industrial is expected to under-perform the Mega Manunggal. But the stock apears to be less risky and, when comparing its historical volatility, Bekasi Fajar Industrial is 1.02 times less risky than Mega Manunggal. The stock trades about -0.14 of its potential returns per unit of risk. The Mega Manunggal Property is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 47,600 in Mega Manunggal Property on December 2, 2024 and sell it today you would earn a total of 600.00 from holding Mega Manunggal Property or generate 1.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bekasi Fajar Industrial vs. Mega Manunggal Property
Performance |
Timeline |
Bekasi Fajar Industrial |
Mega Manunggal Property |
Bekasi Fajar and Mega Manunggal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bekasi Fajar and Mega Manunggal
The main advantage of trading using opposite Bekasi Fajar and Mega Manunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Fajar position performs unexpectedly, Mega Manunggal 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 Mega Manunggal will offset losses from the drop in Mega Manunggal's long position.Bekasi Fajar vs. Agung Podomoro Land | Bekasi Fajar vs. Surya Semesta Internusa | Bekasi Fajar vs. Alam Sutera Realty | Bekasi Fajar vs. Bumi Serpong Damai |
Mega Manunggal vs. Puradelta Lestari PT | Mega Manunggal vs. Jaya Real Property | Mega Manunggal vs. Bekasi Fajar Industrial | Mega Manunggal vs. Metropolitan Land 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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