Correlation Between Arthavest Tbk and Pembangunan Graha
Can any of the company-specific risk be diversified away by investing in both Arthavest Tbk and Pembangunan Graha 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 Arthavest Tbk and Pembangunan Graha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arthavest Tbk and Pembangunan Graha Lestari, you can compare the effects of market volatilities on Arthavest Tbk and Pembangunan Graha 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 Arthavest Tbk with a short position of Pembangunan Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arthavest Tbk and Pembangunan Graha.
Diversification Opportunities for Arthavest Tbk and Pembangunan Graha
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arthavest and Pembangunan is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Arthavest Tbk and Pembangunan Graha Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Graha Lestari and Arthavest Tbk 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 Arthavest Tbk are associated (or correlated) with Pembangunan Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Graha Lestari has no effect on the direction of Arthavest Tbk i.e., Arthavest Tbk and Pembangunan Graha go up and down completely randomly.
Pair Corralation between Arthavest Tbk and Pembangunan Graha
Assuming the 90 days trading horizon Arthavest Tbk is expected to generate 1.69 times less return on investment than Pembangunan Graha. But when comparing it to its historical volatility, Arthavest Tbk is 2.54 times less risky than Pembangunan Graha. It trades about 0.04 of its potential returns per unit of risk. Pembangunan Graha Lestari is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 16,600 in Pembangunan Graha Lestari on September 14, 2024 and sell it today you would earn a total of 1,300 from holding Pembangunan Graha Lestari or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Arthavest Tbk vs. Pembangunan Graha Lestari
Performance |
| Timeline |
| Arthavest Tbk |
| Pembangunan Graha Lestari |
Arthavest Tbk and Pembangunan Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arthavest Tbk and Pembangunan Graha
The main advantage of trading using opposite Arthavest Tbk and Pembangunan Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arthavest Tbk position performs unexpectedly, Pembangunan Graha 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 Pembangunan Graha will offset losses from the drop in Pembangunan Graha's long position.| Arthavest Tbk vs. Pembangunan Graha Lestari | Arthavest Tbk vs. Pembangunan Jaya Ancol | Arthavest Tbk vs. Hotel Sahid Jaya | Arthavest Tbk vs. Mitrabara Adiperdana PT |
| Pembangunan Graha vs. Red Planet Indonesia | Pembangunan Graha vs. Pudjiadi Sons Tbk | Pembangunan Graha vs. Pembangunan Jaya Ancol | Pembangunan Graha vs. Pioneerindo Gourmet International |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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