Correlation Between Bekasi Fajar and Summarecon Agung

Can any of the company-specific risk be diversified away by investing in both Bekasi Fajar and Summarecon Agung 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 Summarecon Agung 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 Summarecon Agung Tbk, you can compare the effects of market volatilities on Bekasi Fajar and Summarecon Agung 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 Summarecon Agung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Fajar and Summarecon Agung.

Diversification Opportunities for Bekasi Fajar and Summarecon Agung

0.92

Correlation Coefficient

Bekasi Fajar  Summarecon Agung

Almost no diversification

The 3 months correlation between Bekasi and Summarecon is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Fajar Industrial and Summarecon Agung Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summarecon Agung Tbk 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 Summarecon Agung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summarecon Agung Tbk has no effect on the direction of Bekasi Fajar i.e., Bekasi Fajar and Summarecon Agung go up and down completely randomly.

Pair Corralation between Bekasi Fajar and Summarecon Agung

Assuming the 90 days trading horizon Bekasi Fajar Industrial is expected to generate 0.99 times more return on investment than Summarecon Agung. However, Bekasi Fajar Industrial is 1.01 times less risky than Summarecon Agung. It trades about -0.12 of its potential returns per unit of risk. Summarecon Agung Tbk is currently generating about -0.16 per unit of risk. If you would invest  10,100  in Bekasi Fajar Industrial on December 29, 2024 and sell it today you would lose (1,500) from holding Bekasi Fajar Industrial or give up 14.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Bekasi Fajar Industrial  vs.  Summarecon Agung Tbk

Bekasi Fajar Industrial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bekasi Fajar Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Summarecon Agung Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Summarecon Agung Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Bekasi Fajar and Summarecon Agung

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

The idea behind Bekasi Fajar Industrial and Summarecon Agung Tbk 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.