Correlation Between Graha Layar and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both Graha Layar and Bintang Oto 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 Graha Layar and Bintang Oto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graha Layar Prima and Bintang Oto Global, you can compare the effects of market volatilities on Graha Layar and Bintang Oto 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 Graha Layar with a short position of Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Layar and Bintang Oto.
Diversification Opportunities for Graha Layar and Bintang Oto
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Graha and Bintang is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Graha Layar Prima and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global and Graha Layar 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 Graha Layar Prima are associated (or correlated) with Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of Graha Layar i.e., Graha Layar and Bintang Oto go up and down completely randomly.
Pair Corralation between Graha Layar and Bintang Oto
Assuming the 90 days trading horizon Graha Layar Prima is expected to generate 2.28 times more return on investment than Bintang Oto. However, Graha Layar is 2.28 times more volatile than Bintang Oto Global. It trades about 0.02 of its potential returns per unit of risk. Bintang Oto Global is currently generating about -0.09 per unit of risk. If you would invest 197,000 in Graha Layar Prima on August 27, 2024 and sell it today you would earn a total of 3,000 from holding Graha Layar Prima or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.44% |
| Values | Daily Returns |
Graha Layar Prima vs. Bintang Oto Global
Performance |
| Timeline |
| Graha Layar Prima |
| Bintang Oto Global |
Graha Layar and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Layar and Bintang Oto
The main advantage of trading using opposite Graha Layar and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Layar position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto's long position.| Graha Layar vs. Electronic City Indonesia | Graha Layar vs. Bayu Buana Tbk | Graha Layar vs. Bintang Oto Global | Graha Layar vs. Garuda Metalindo Tbk |
| Bintang Oto vs. Surya Permata Andalan | Bintang Oto vs. Aneka Gas Industri | Bintang Oto vs. Buana Listya Tama | Bintang Oto vs. Trisula Textile Industries |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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