Correlation Between Adhi Commuter and GTS Internasional
Can any of the company-specific risk be diversified away by investing in both Adhi Commuter and GTS Internasional 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 Adhi Commuter and GTS Internasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adhi Commuter Properti and GTS Internasional Tbk, you can compare the effects of market volatilities on Adhi Commuter and GTS Internasional 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 Adhi Commuter with a short position of GTS Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adhi Commuter and GTS Internasional.
Diversification Opportunities for Adhi Commuter and GTS Internasional
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Adhi and GTS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Adhi Commuter Properti and GTS Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTS Internasional Tbk and Adhi Commuter 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 Adhi Commuter Properti are associated (or correlated) with GTS Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTS Internasional Tbk has no effect on the direction of Adhi Commuter i.e., Adhi Commuter and GTS Internasional go up and down completely randomly.
Pair Corralation between Adhi Commuter and GTS Internasional
Assuming the 90 days trading horizon Adhi Commuter Properti is expected to generate 0.57 times more return on investment than GTS Internasional. However, Adhi Commuter Properti is 1.75 times less risky than GTS Internasional. It trades about -0.04 of its potential returns per unit of risk. GTS Internasional Tbk is currently generating about -0.03 per unit of risk. If you would invest 7,000 in Adhi Commuter Properti on August 27, 2024 and sell it today you would lose (2,000) from holding Adhi Commuter Properti or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adhi Commuter Properti vs. GTS Internasional Tbk
Performance |
| Timeline |
| Adhi Commuter Properti |
| GTS Internasional Tbk |
Adhi Commuter and GTS Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adhi Commuter and GTS Internasional
The main advantage of trading using opposite Adhi Commuter and GTS Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adhi Commuter position performs unexpectedly, GTS Internasional 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 GTS Internasional will offset losses from the drop in GTS Internasional's long position.| Adhi Commuter vs. Jaya Sukses Makmur | Adhi Commuter vs. Pollux Investasi Internasional | Adhi Commuter vs. Modernland Realty Ltd | Adhi Commuter vs. Suryamas Dutamakmur Tbk |
| GTS Internasional vs. PT Dewi Shri | GTS Internasional vs. Habco Trans Maritima | GTS Internasional vs. PT Hasnur Internasional | GTS Internasional vs. PT Toba Surimi |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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