Correlation Between ACCSYS TECHPLC and PT Gudang
Can any of the company-specific risk be diversified away by investing in both ACCSYS TECHPLC and PT Gudang 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 ACCSYS TECHPLC and PT Gudang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACCSYS TECHPLC EO and PT Gudang Garam, you can compare the effects of market volatilities on ACCSYS TECHPLC and PT Gudang 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 ACCSYS TECHPLC with a short position of PT Gudang. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and PT Gudang.
Diversification Opportunities for ACCSYS TECHPLC and PT Gudang
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACCSYS and GGG is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO and PT Gudang Garam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gudang Garam and ACCSYS TECHPLC 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 ACCSYS TECHPLC EO are associated (or correlated) with PT Gudang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gudang Garam has no effect on the direction of ACCSYS TECHPLC i.e., ACCSYS TECHPLC and PT Gudang go up and down completely randomly.
Pair Corralation between ACCSYS TECHPLC and PT Gudang
Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to under-perform the PT Gudang. But the stock apears to be less risky and, when comparing its historical volatility, ACCSYS TECHPLC EO is 2.1 times less risky than PT Gudang. The stock trades about -0.22 of its potential returns per unit of risk. The PT Gudang Garam is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 69.00 in PT Gudang Garam on November 27, 2024 and sell it today you would lose (4.00) from holding PT Gudang Garam or give up 5.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACCSYS TECHPLC EO vs. PT Gudang Garam
Performance |
| Timeline |
| ACCSYS TECHPLC EO |
| PT Gudang Garam |
ACCSYS TECHPLC and PT Gudang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACCSYS TECHPLC and PT Gudang
The main advantage of trading using opposite ACCSYS TECHPLC and PT Gudang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCSYS TECHPLC position performs unexpectedly, PT Gudang 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 Gudang will offset losses from the drop in PT Gudang's long position.| ACCSYS TECHPLC vs. Khiron Life Sciences | ACCSYS TECHPLC vs. Nippon Steel | ACCSYS TECHPLC vs. SCANSOURCE | ACCSYS TECHPLC vs. Dentsply Sirona |
| PT Gudang vs. Playa Hotels Resorts | PT Gudang vs. PPHE HOTEL GROUP | PT Gudang vs. Data Modul AG | PT Gudang vs. DALATA HOTEL |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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