Correlation Between Graha Layar and Sejahteraraya Anugrahjaya
Can any of the company-specific risk be diversified away by investing in both Graha Layar and Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya Tbk, you can compare the effects of market volatilities on Graha Layar and Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Layar and Sejahteraraya Anugrahjaya.
Diversification Opportunities for Graha Layar and Sejahteraraya Anugrahjaya
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Graha and Sejahteraraya is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Graha Layar Prima and Sejahteraraya Anugrahjaya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahteraraya Anugrahjaya has no effect on the direction of Graha Layar i.e., Graha Layar and Sejahteraraya Anugrahjaya go up and down completely randomly.
Pair Corralation between Graha Layar and Sejahteraraya Anugrahjaya
Assuming the 90 days trading horizon Graha Layar Prima is expected to under-perform the Sejahteraraya Anugrahjaya. But the stock apears to be less risky and, when comparing its historical volatility, Graha Layar Prima is 1.79 times less risky than Sejahteraraya Anugrahjaya. The stock trades about -0.31 of its potential returns per unit of risk. The Sejahteraraya Anugrahjaya Tbk is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 321,000 in Sejahteraraya Anugrahjaya Tbk on August 30, 2024 and sell it today you would lose (27,000) from holding Sejahteraraya Anugrahjaya Tbk or give up 8.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graha Layar Prima vs. Sejahteraraya Anugrahjaya Tbk
Performance |
| Timeline |
| Graha Layar Prima |
| Sejahteraraya Anugrahjaya |
Graha Layar and Sejahteraraya Anugrahjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Layar and Sejahteraraya Anugrahjaya
The main advantage of trading using opposite Graha Layar and Sejahteraraya Anugrahjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Layar position performs unexpectedly, Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya will offset losses from the drop in Sejahteraraya Anugrahjaya'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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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