Correlation Between Akr Corporindo and Bukit Uluwatu
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Bukit Uluwatu 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 Akr Corporindo and Bukit Uluwatu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Bukit Uluwatu Villa, you can compare the effects of market volatilities on Akr Corporindo and Bukit Uluwatu 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 Akr Corporindo with a short position of Bukit Uluwatu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Bukit Uluwatu.
Diversification Opportunities for Akr Corporindo and Bukit Uluwatu
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akr and Bukit is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Bukit Uluwatu Villa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Uluwatu Villa and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with Bukit Uluwatu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Uluwatu Villa has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Bukit Uluwatu go up and down completely randomly.
Pair Corralation between Akr Corporindo and Bukit Uluwatu
Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to under-perform the Bukit Uluwatu. In addition to that, Akr Corporindo is 1.52 times more volatile than Bukit Uluwatu Villa. It trades about -0.04 of its total potential returns per unit of risk. Bukit Uluwatu Villa is currently generating about 0.13 per unit of volatility. If you would invest 5,300 in Bukit Uluwatu Villa on March 12, 2024 and sell it today you would earn a total of 500.00 from holding Bukit Uluwatu Villa or generate 9.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Akr Corporindo Tbk vs. Bukit Uluwatu Villa
Performance |
Timeline |
Akr Corporindo Tbk |
Bukit Uluwatu Villa |
Akr Corporindo and Bukit Uluwatu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akr Corporindo and Bukit Uluwatu
The main advantage of trading using opposite Akr Corporindo and Bukit Uluwatu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Bukit Uluwatu 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 Bukit Uluwatu will offset losses from the drop in Bukit Uluwatu's long position.Akr Corporindo vs. Prodia Widyahusada Tbk | Akr Corporindo vs. Panca Budi Idaman | Akr Corporindo vs. Medikaloka Hermina PT |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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