Correlation Between Roda Vivatex and Bumi Serpong
Can any of the company-specific risk be diversified away by investing in both Roda Vivatex and Bumi Serpong 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 Roda Vivatex and Bumi Serpong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roda Vivatex Tbk and Bumi Serpong Damai, you can compare the effects of market volatilities on Roda Vivatex and Bumi Serpong 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 Roda Vivatex with a short position of Bumi Serpong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roda Vivatex and Bumi Serpong.
Diversification Opportunities for Roda Vivatex and Bumi Serpong
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Roda and Bumi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Roda Vivatex Tbk and Bumi Serpong Damai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumi Serpong Damai and Roda Vivatex 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 Roda Vivatex Tbk are associated (or correlated) with Bumi Serpong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumi Serpong Damai has no effect on the direction of Roda Vivatex i.e., Roda Vivatex and Bumi Serpong go up and down completely randomly.
Pair Corralation between Roda Vivatex and Bumi Serpong
Assuming the 90 days trading horizon Roda Vivatex Tbk is expected to under-perform the Bumi Serpong. In addition to that, Roda Vivatex is 1.2 times more volatile than Bumi Serpong Damai. It trades about -0.13 of its total potential returns per unit of risk. Bumi Serpong Damai is currently generating about -0.1 per unit of volatility. If you would invest 100,500 in Bumi Serpong Damai on November 16, 2024 and sell it today you would lose (9,500) from holding Bumi Serpong Damai or give up 9.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Roda Vivatex Tbk vs. Bumi Serpong Damai
Performance |
Timeline |
Roda Vivatex Tbk |
Bumi Serpong Damai |
Roda Vivatex and Bumi Serpong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Roda Vivatex and Bumi Serpong
The main advantage of trading using opposite Roda Vivatex and Bumi Serpong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roda Vivatex position performs unexpectedly, Bumi Serpong 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 Bumi Serpong will offset losses from the drop in Bumi Serpong's long position.Roda Vivatex vs. Supreme Cable Manufacturing | ||
Roda Vivatex vs. Ristia Bintang Mahkotasejati | ||
Roda Vivatex vs. Ricky Putra Globalindo | ||
Roda Vivatex vs. Suryamas Dutamakmur Tbk |
Bumi Serpong vs. Alam Sutera Realty | ||
Bumi Serpong vs. Ciputra Development Tbk | ||
Bumi Serpong vs. Summarecon Agung Tbk | ||
Bumi Serpong vs. Pakuwon Jati 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
CEOs Directory Screen CEOs from public companies around the world | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |