Correlation Between BAKRIE SUMATERA and Apple

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

By analyzing existing cross correlation between BAKRIE SUMATERA PL and Apple Inc, you can compare the effects of market volatilities on BAKRIE SUMATERA and Apple 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 BAKRIE SUMATERA with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAKRIE SUMATERA and Apple.

Diversification Opportunities for BAKRIE SUMATERA and Apple

-0.38

Correlation Coefficient

BAKRIE SUMATERA  Apple

Very good diversification

The 3 months correlation between BAKRIE and Apple is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding BAKRIE SUMATERA PL and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and BAKRIE SUMATERA 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 BAKRIE SUMATERA PL are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of BAKRIE SUMATERA i.e., BAKRIE SUMATERA and Apple go up and down completely randomly.

Pair Corralation between BAKRIE SUMATERA and Apple

Assuming the 90 days trading horizon BAKRIE SUMATERA PL is expected to generate 21.09 times more return on investment than Apple. However, BAKRIE SUMATERA is 21.09 times more volatile than Apple Inc. It trades about 0.17 of its potential returns per unit of risk. Apple Inc is currently generating about 0.02 per unit of risk. If you would invest  0.20  in BAKRIE SUMATERA PL on April 24, 2025 and sell it today you would earn a total of  0.80  from holding BAKRIE SUMATERA PL or generate 400.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

BAKRIE SUMATERA PL  vs.  Apple Inc

BAKRIE SUMATERA PL

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BAKRIE SUMATERA PL are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BAKRIE SUMATERA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Apple Inc

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Apple is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BAKRIE SUMATERA and Apple

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

The idea behind BAKRIE SUMATERA PL and Apple Inc 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.