Correlation Between Inti Bangun and Bukaka Teknik

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

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

Diversification Opportunities for Inti Bangun and Bukaka Teknik

0.0

Correlation Coefficient

Inti Bangun  Bukaka Teknik

Pay attention - limited upside

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

Pair Corralation between Inti Bangun and Bukaka Teknik

Assuming the 90 days trading horizon Inti Bangun Sejahtera is expected to generate 0.74 times more return on investment than Bukaka Teknik. However, Inti Bangun Sejahtera is 1.35 times less risky than Bukaka Teknik. It trades about 0.0 of its potential returns per unit of risk. Bukaka Teknik Utama is currently generating about 0.0 per unit of risk. If you would invest  627,500  in Inti Bangun Sejahtera on October 12, 2024 and sell it today you would lose (65,000) from holding Inti Bangun Sejahtera or give up 10.36% of portfolio value over 90 days.

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

Inti Bangun Sejahtera  vs.  Bukaka Teknik Utama

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.

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.

Pair Trading with Inti Bangun and Bukaka Teknik

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

The idea behind Inti Bangun Sejahtera and Bukaka Teknik Utama 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.