Correlation Between Sentul City and Gajah Tunggal
Can any of the company-specific risk be diversified away by investing in both Sentul City and Gajah Tunggal 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 Sentul City and Gajah Tunggal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentul City Tbk and Gajah Tunggal Tbk, you can compare the effects of market volatilities on Sentul City and Gajah Tunggal 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 Sentul City with a short position of Gajah Tunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentul City and Gajah Tunggal.
Diversification Opportunities for Sentul City and Gajah Tunggal
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sentul and Gajah is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sentul City Tbk and Gajah Tunggal Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gajah Tunggal Tbk and Sentul City 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 Sentul City Tbk are associated (or correlated) with Gajah Tunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gajah Tunggal Tbk has no effect on the direction of Sentul City i.e., Sentul City and Gajah Tunggal go up and down completely randomly.
Pair Corralation between Sentul City and Gajah Tunggal
Assuming the 90 days trading horizon Sentul City Tbk is expected to generate 1.57 times more return on investment than Gajah Tunggal. However, Sentul City is 1.57 times more volatile than Gajah Tunggal Tbk. It trades about 0.03 of its potential returns per unit of risk. Gajah Tunggal Tbk is currently generating about 0.04 per unit of risk. If you would invest 5,000 in Sentul City Tbk on November 5, 2024 and sell it today you would earn a total of 500.00 from holding Sentul City Tbk or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentul City Tbk vs. Gajah Tunggal Tbk
Performance |
| Timeline |
| Sentul City Tbk |
| Gajah Tunggal Tbk |
Sentul City and Gajah Tunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentul City and Gajah Tunggal
The main advantage of trading using opposite Sentul City and Gajah Tunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentul City position performs unexpectedly, Gajah Tunggal 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 Gajah Tunggal will offset losses from the drop in Gajah Tunggal's long position.| Sentul City vs. Alam Sutera Realty | Sentul City vs. Kawasan Industri Jababeka | Sentul City vs. Lippo Karawaci Tbk | Sentul City vs. Ciputra Development Tbk |
| Gajah Tunggal vs. Perusahaan Perkebunan London | Gajah Tunggal vs. Solusi Bangun Indonesia | Gajah Tunggal vs. Ciputra Development Tbk | Gajah Tunggal vs. Global Mediacom Tbk |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |