Correlation Between Global Mediacom and Kawasan Industri
Can any of the company-specific risk be diversified away by investing in both Global Mediacom and Kawasan Industri 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 Global Mediacom and Kawasan Industri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Mediacom Tbk and Kawasan Industri Jababeka, you can compare the effects of market volatilities on Global Mediacom and Kawasan Industri 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 Global Mediacom with a short position of Kawasan Industri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Mediacom and Kawasan Industri.
Diversification Opportunities for Global Mediacom and Kawasan Industri
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Kawasan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Global Mediacom Tbk and Kawasan Industri Jababeka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawasan Industri Jababeka and Global Mediacom 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 Global Mediacom Tbk are associated (or correlated) with Kawasan Industri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawasan Industri Jababeka has no effect on the direction of Global Mediacom i.e., Global Mediacom and Kawasan Industri go up and down completely randomly.
Pair Corralation between Global Mediacom and Kawasan Industri
Assuming the 90 days trading horizon Global Mediacom Tbk is expected to under-perform the Kawasan Industri. In addition to that, Global Mediacom is 1.65 times more volatile than Kawasan Industri Jababeka. It trades about -0.33 of its total potential returns per unit of risk. Kawasan Industri Jababeka is currently generating about 0.05 per unit of volatility. If you would invest 19,200 in Kawasan Industri Jababeka on August 25, 2024 and sell it today you would earn a total of 200.00 from holding Kawasan Industri Jababeka or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Mediacom Tbk vs. Kawasan Industri Jababeka
Performance |
| Timeline |
| Global Mediacom Tbk |
| Kawasan Industri Jababeka |
Global Mediacom and Kawasan Industri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Mediacom and Kawasan Industri
The main advantage of trading using opposite Global Mediacom and Kawasan Industri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Mediacom position performs unexpectedly, Kawasan Industri 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 Kawasan Industri will offset losses from the drop in Kawasan Industri's long position.| Global Mediacom vs. Media Nusantara Citra | Global Mediacom vs. Mnc Investama Tbk | Global Mediacom vs. Akr Corporindo Tbk | Global Mediacom vs. Ciputra Development Tbk |
| Kawasan Industri vs. Bakrieland Development Tbk | Kawasan Industri vs. Ciputra Development Tbk | Kawasan Industri vs. Sentul City Tbk | Kawasan Industri vs. Lippo Karawaci 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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