Correlation Between Cahayaputra Asa and Gunawan Dianjaya
Can any of the company-specific risk be diversified away by investing in both Cahayaputra Asa and Gunawan Dianjaya 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 Cahayaputra Asa and Gunawan Dianjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cahayaputra Asa Keramik and Gunawan Dianjaya Steel, you can compare the effects of market volatilities on Cahayaputra Asa and Gunawan Dianjaya 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 Cahayaputra Asa with a short position of Gunawan Dianjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cahayaputra Asa and Gunawan Dianjaya.
Diversification Opportunities for Cahayaputra Asa and Gunawan Dianjaya
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cahayaputra and Gunawan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cahayaputra Asa Keramik and Gunawan Dianjaya Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunawan Dianjaya Steel and Cahayaputra Asa 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 Cahayaputra Asa Keramik are associated (or correlated) with Gunawan Dianjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunawan Dianjaya Steel has no effect on the direction of Cahayaputra Asa i.e., Cahayaputra Asa and Gunawan Dianjaya go up and down completely randomly.
Pair Corralation between Cahayaputra Asa and Gunawan Dianjaya
Assuming the 90 days trading horizon Cahayaputra Asa Keramik is expected to generate 0.6 times more return on investment than Gunawan Dianjaya. However, Cahayaputra Asa Keramik is 1.66 times less risky than Gunawan Dianjaya. It trades about -0.02 of its potential returns per unit of risk. Gunawan Dianjaya Steel is currently generating about -0.09 per unit of risk. If you would invest 15,200 in Cahayaputra Asa Keramik on September 24, 2024 and sell it today you would lose (500.00) from holding Cahayaputra Asa Keramik or give up 3.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cahayaputra Asa Keramik vs. Gunawan Dianjaya Steel
Performance |
Timeline |
Cahayaputra Asa Keramik |
Gunawan Dianjaya Steel |
Cahayaputra Asa and Gunawan Dianjaya Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cahayaputra Asa and Gunawan Dianjaya
The main advantage of trading using opposite Cahayaputra Asa and Gunawan Dianjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cahayaputra Asa position performs unexpectedly, Gunawan Dianjaya 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 Gunawan Dianjaya will offset losses from the drop in Gunawan Dianjaya's long position.Cahayaputra Asa vs. Gunawan Dianjaya Steel | Cahayaputra Asa vs. Yelooo Integra Datanet | Cahayaputra Asa vs. Arita Prima Indonesia | Cahayaputra Asa vs. Bekasi Asri Pemula |
Gunawan Dianjaya vs. Intanwijaya Internasional Tbk | Gunawan Dianjaya vs. Asiaplast Industries Tbk | Gunawan Dianjaya vs. Trias Sentosa Tbk | Gunawan Dianjaya vs. Lotte Chemical Titan |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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