Correlation Between Graha Layar and Arkadia Digital
Can any of the company-specific risk be diversified away by investing in both Graha Layar and Arkadia Digital 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 Arkadia Digital 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 Arkadia Digital Media, you can compare the effects of market volatilities on Graha Layar and Arkadia Digital 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 Arkadia Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Layar and Arkadia Digital.
Diversification Opportunities for Graha Layar and Arkadia Digital
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Graha and Arkadia is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Graha Layar Prima and Arkadia Digital Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkadia Digital Media 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 Arkadia Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkadia Digital Media has no effect on the direction of Graha Layar i.e., Graha Layar and Arkadia Digital go up and down completely randomly.
Pair Corralation between Graha Layar and Arkadia Digital
If you would invest 1,600 in Arkadia Digital Media on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Arkadia Digital Media or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Graha Layar Prima vs. Arkadia Digital Media
Performance |
| Timeline |
| Graha Layar Prima |
| Arkadia Digital Media |
Graha Layar and Arkadia Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Layar and Arkadia Digital
The main advantage of trading using opposite Graha Layar and Arkadia Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Layar position performs unexpectedly, Arkadia Digital 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 Arkadia Digital will offset losses from the drop in Arkadia Digital's long position.| Graha Layar vs. Fast Food Indonesia | Graha Layar vs. Centratama Telekomunikasi Ind | Graha Layar vs. Sumber Alfaria Trijaya | Graha Layar vs. Bayu Buana Tbk |
| Arkadia Digital vs. Electronic City Indonesia | Arkadia Digital vs. MD Pictures Tbk | Arkadia Digital vs. Bintang Oto Global | Arkadia Digital vs. Graha Layar Prima |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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