Correlation Between Agro Yasa and Guna Timur
Can any of the company-specific risk be diversified away by investing in both Agro Yasa and Guna Timur 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 Agro Yasa and Guna Timur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agro Yasa Lestari and Guna Timur Raya, you can compare the effects of market volatilities on Agro Yasa and Guna Timur 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 Agro Yasa with a short position of Guna Timur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Yasa and Guna Timur.
Diversification Opportunities for Agro Yasa and Guna Timur
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agro and Guna is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agro Yasa Lestari and Guna Timur Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guna Timur Raya and Agro Yasa 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 Agro Yasa Lestari are associated (or correlated) with Guna Timur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guna Timur Raya has no effect on the direction of Agro Yasa i.e., Agro Yasa and Guna Timur go up and down completely randomly.
Pair Corralation between Agro Yasa and Guna Timur
Assuming the 90 days trading horizon Agro Yasa Lestari is expected to under-perform the Guna Timur. But the stock apears to be less risky and, when comparing its historical volatility, Agro Yasa Lestari is 1.84 times less risky than Guna Timur. The stock trades about -0.43 of its potential returns per unit of risk. The Guna Timur Raya is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 10,600 in Guna Timur Raya on September 1, 2024 and sell it today you would lose (2,500) from holding Guna Timur Raya or give up 23.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agro Yasa Lestari vs. Guna Timur Raya
Performance |
| Timeline |
| Agro Yasa Lestari |
| Guna Timur Raya |
Agro Yasa and Guna Timur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Yasa and Guna Timur
The main advantage of trading using opposite Agro Yasa and Guna Timur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Yasa position performs unexpectedly, Guna Timur 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 Guna Timur will offset losses from the drop in Guna Timur's long position.| Agro Yasa vs. Sinergi Inti Plastindo | Agro Yasa vs. Bank Amar Indonesia | Agro Yasa vs. Andalan Sakti Primaindo | Agro Yasa vs. Era Mandiri Cemerlang |
| Guna Timur vs. Sinergi Inti Plastindo | Guna Timur vs. Hartadinata Abadi Tbk | Guna Timur vs. Weha Transportasi Indonesia | Guna Timur vs. Dewata Freight 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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