Correlation Between Pembangunan Graha and Karya Bersama

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

By analyzing existing cross correlation between Pembangunan Graha Lestari and Karya Bersama Anugerah, you can compare the effects of market volatilities on Pembangunan Graha and Karya Bersama 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 Pembangunan Graha with a short position of Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Karya Bersama.

Diversification Opportunities for Pembangunan Graha and Karya Bersama

-0.4

Correlation Coefficient

Pembangunan Graha  Karya Bersama

Very good diversification

The 3 months correlation between Pembangunan and Karya is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari and Karya Bersama Anugerah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karya Bersama Anugerah and Pembangunan Graha 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 Pembangunan Graha Lestari are associated (or correlated) with Karya Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karya Bersama Anugerah has no effect on the direction of Pembangunan Graha i.e., Pembangunan Graha and Karya Bersama go up and down completely randomly.

Pair Corralation between Pembangunan Graha and Karya Bersama

Assuming the 90 days trading horizon Pembangunan Graha Lestari is expected to generate 0.78 times more return on investment than Karya Bersama. However, Pembangunan Graha Lestari is 1.27 times less risky than Karya Bersama. It trades about 0.05 of its potential returns per unit of risk. Karya Bersama Anugerah is currently generating about 0.04 per unit of risk. If you would invest  17,100  in Pembangunan Graha Lestari on September 13, 2024 and sell it today you would earn a total of  1,300  from holding Pembangunan Graha Lestari or generate 7.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pembangunan Graha Lestari  vs.  Karya Bersama Anugerah

Pembangunan Graha Lestari

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pembangunan Graha Lestari are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Pembangunan Graha may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Karya Bersama Anugerah

Risk-Adjusted Performance

3 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Karya Bersama Anugerah are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Karya Bersama may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Pembangunan Graha and Karya Bersama

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

The idea behind Pembangunan Graha Lestari and Karya Bersama Anugerah 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.