Correlation Between Shougang Fushan and PT Bukit

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Can any of the company-specific risk be diversified away by investing in both Shougang Fushan and PT Bukit 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 Shougang Fushan and PT Bukit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shougang Fushan Resources and PT Bukit Asam, you can compare the effects of market volatilities on Shougang Fushan and PT Bukit 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 Shougang Fushan with a short position of PT Bukit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shougang Fushan and PT Bukit.

Diversification Opportunities for Shougang Fushan and PT Bukit

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Shougang Fushan and PT Bukit

If you would invest (100.00) in PT Bukit Asam on August 19, 2025 and sell it today you would earn a total of  100.00  from holding PT Bukit Asam or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Shougang Fushan Resources  vs.  PT Bukit Asam

 Performance 
       Timeline  
Shougang Fushan Resources 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Shougang Fushan Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Shougang Fushan is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
PT Bukit Asam 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days PT Bukit Asam has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PT Bukit is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Shougang Fushan and PT Bukit Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shougang Fushan and PT Bukit

The main advantage of trading using opposite Shougang Fushan and PT Bukit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shougang Fushan position performs unexpectedly, PT Bukit 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 PT Bukit will offset losses from the drop in PT Bukit's long position.
The idea behind Shougang Fushan Resources and PT Bukit Asam 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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