Correlation Between Avia Avian and GTS Internasional
Can any of the company-specific risk be diversified away by investing in both Avia Avian 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 Avia Avian and GTS Internasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avia Avian PT and GTS Internasional Tbk, you can compare the effects of market volatilities on Avia Avian 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 Avia Avian with a short position of GTS Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avia Avian and GTS Internasional.
Diversification Opportunities for Avia Avian and GTS Internasional
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Avia and GTS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Avia Avian PT 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 Avia Avian 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 Avia Avian PT 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 Avia Avian i.e., Avia Avian and GTS Internasional go up and down completely randomly.
Pair Corralation between Avia Avian and GTS Internasional
Assuming the 90 days trading horizon Avia Avian PT is expected to generate 0.81 times more return on investment than GTS Internasional. However, Avia Avian PT is 1.23 times less risky than GTS Internasional. It trades about -0.03 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 68,174 in Avia Avian PT on August 27, 2024 and sell it today you would lose (22,574) from holding Avia Avian PT or give up 33.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avia Avian PT vs. GTS Internasional Tbk
Performance |
| Timeline |
| Avia Avian PT |
| GTS Internasional Tbk |
Avia Avian and GTS Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avia Avian and GTS Internasional
The main advantage of trading using opposite Avia Avian and GTS Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avia Avian 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.| Avia Avian vs. RMK Energy PT | Avia Avian vs. PT Hasnur Internasional | Avia Avian vs. Surya Biru Murni | Avia Avian vs. PAM Mineral 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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