Correlation Between Bukaka Teknik and Inti Bangun

Can any of the company-specific risk be diversified away by investing in both Bukaka Teknik and Inti Bangun 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 Bukaka Teknik and Inti Bangun into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bukaka Teknik Utama and Inti Bangun Sejahtera, you can compare the effects of market volatilities on Bukaka Teknik and Inti Bangun 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 Bukaka Teknik with a short position of Inti Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukaka Teknik and Inti Bangun.

Diversification Opportunities for Bukaka Teknik and Inti Bangun

0.0

Correlation Coefficient

Bukaka Teknik  Inti Bangun

Pay attention - limited upside

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

Pair Corralation between Bukaka Teknik and Inti Bangun

Assuming the 90 days trading horizon Bukaka Teknik Utama is expected to under-perform the Inti Bangun. But the stock apears to be less risky and, when comparing its historical volatility, Bukaka Teknik Utama is 1.47 times less risky than Inti Bangun. The stock trades about -0.13 of its potential returns per unit of risk. The Inti Bangun Sejahtera is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  500,000  in Inti Bangun Sejahtera on October 12, 2024 and sell it today you would earn a total of  62,500  from holding Inti Bangun Sejahtera or generate 12.5% return on investment over 90 days.

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

Bukaka Teknik Utama  vs.  Inti Bangun Sejahtera

Bukaka Teknik Utama

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bukaka Teknik Utama 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.

Inti Bangun Sejahtera

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inti Bangun Sejahtera are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Inti Bangun disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bukaka Teknik and Inti Bangun

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

The idea behind Bukaka Teknik Utama and Inti Bangun Sejahtera 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.