Correlation Between Dewata Freight and Guna Timur

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

By analyzing existing cross correlation between Dewata Freight International and Guna Timur Raya, you can compare the effects of market volatilities on Dewata Freight and Guna Timur 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 Dewata Freight with a short position of Guna Timur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dewata Freight and Guna Timur.

Diversification Opportunities for Dewata Freight and Guna Timur

0.0

Correlation Coefficient

Dewata Freight  Guna Timur

Pay attention - limited upside

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

Pair Corralation between Dewata Freight and Guna Timur

If you would invest  600.00  in Dewata Freight International on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Dewata Freight International or generate 0.0% return on investment over 90 days.

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

Dewata Freight International  vs.  Guna Timur Raya

Dewata Freight Inter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dewata Freight International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Dewata Freight is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Guna Timur Raya

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Guna Timur Raya has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Dewata Freight and Guna Timur

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

The idea behind Dewata Freight International and Guna Timur Raya 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.