Correlation Between Bhuwanatala Indah and GTS Internasional
Can any of the company-specific risk be diversified away by investing in both Bhuwanatala Indah 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 Bhuwanatala Indah and GTS Internasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bhuwanatala Indah Permai and GTS Internasional Tbk, you can compare the effects of market volatilities on Bhuwanatala Indah 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 Bhuwanatala Indah with a short position of GTS Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhuwanatala Indah and GTS Internasional.
Diversification Opportunities for Bhuwanatala Indah and GTS Internasional
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bhuwanatala and GTS is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bhuwanatala Indah Permai 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 Bhuwanatala Indah 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 Bhuwanatala Indah Permai 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 Bhuwanatala Indah i.e., Bhuwanatala Indah and GTS Internasional go up and down completely randomly.
Pair Corralation between Bhuwanatala Indah and GTS Internasional
Assuming the 90 days trading horizon Bhuwanatala Indah Permai is expected to generate 1.22 times more return on investment than GTS Internasional. However, Bhuwanatala Indah is 1.22 times more volatile than GTS Internasional Tbk. It trades about 0.19 of its potential returns per unit of risk. GTS Internasional Tbk is currently generating about -0.27 per unit of risk. If you would invest 2,900 in Bhuwanatala Indah Permai on September 1, 2024 and sell it today you would earn a total of 300.00 from holding Bhuwanatala Indah Permai or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bhuwanatala Indah Permai vs. GTS Internasional Tbk
Performance |
| Timeline |
| Bhuwanatala Indah Permai |
| GTS Internasional Tbk |
Bhuwanatala Indah and GTS Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bhuwanatala Indah and GTS Internasional
The main advantage of trading using opposite Bhuwanatala Indah and GTS Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bhuwanatala Indah 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.| Bhuwanatala Indah vs. Lippo Cikarang Tbk | Bhuwanatala Indah vs. Lippo Karawaci Tbk | Bhuwanatala Indah vs. Mitra Pinasthika Mustika | Bhuwanatala Indah vs. Jakarta Int Hotels |
| GTS Internasional vs. Transcoal Pacific Tbk | GTS Internasional vs. PT Temas Tbk | GTS Internasional vs. Samudera Indonesia Tbk | GTS Internasional vs. Pelita Samudera Shipping |
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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