Correlation Between Bintang Samudera and GTS Internasional
Can any of the company-specific risk be diversified away by investing in both Bintang Samudera and GTS Internasional 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 Bintang Samudera and GTS Internasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bintang Samudera Mandiri and GTS Internasional Tbk, you can compare the effects of market volatilities on Bintang Samudera and GTS Internasional 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 Bintang Samudera with a short position of GTS Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bintang Samudera and GTS Internasional.
Diversification Opportunities for Bintang Samudera and GTS Internasional
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bintang and GTS is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bintang Samudera Mandiri and GTS Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTS Internasional Tbk and Bintang Samudera 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 Bintang Samudera Mandiri are associated (or correlated) with GTS Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTS Internasional Tbk has no effect on the direction of Bintang Samudera i.e., Bintang Samudera and GTS Internasional go up and down completely randomly.
Pair Corralation between Bintang Samudera and GTS Internasional
Assuming the 90 days trading horizon Bintang Samudera is expected to generate 2.92 times less return on investment than GTS Internasional. In addition to that, Bintang Samudera is 1.05 times more volatile than GTS Internasional Tbk. It trades about 0.03 of its total potential returns per unit of risk. GTS Internasional Tbk is currently generating about 0.09 per unit of volatility. If you would invest 3,000 in GTS Internasional Tbk on August 28, 2024 and sell it today you would earn a total of 500.00 from holding GTS Internasional Tbk or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bintang Samudera Mandiri vs. GTS Internasional Tbk
Performance |
| Timeline |
| Bintang Samudera Mandiri |
| GTS Internasional Tbk |
Bintang Samudera and GTS Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bintang Samudera and GTS Internasional
The main advantage of trading using opposite Bintang Samudera and GTS Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bintang Samudera position performs unexpectedly, GTS Internasional 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 GTS Internasional will offset losses from the drop in GTS Internasional's long position.| Bintang Samudera vs. Bank Central Asia | Bintang Samudera vs. Bank Rakyat Indonesia | Bintang Samudera vs. Bayan Resources Tbk | Bintang Samudera vs. Bank Mandiri Persero |
| GTS Internasional vs. PT Hasnur Internasional | GTS Internasional vs. Archi Indonesia Tbk | GTS Internasional vs. Cemindo Gemilang Tbk | GTS Internasional vs. PAM Mineral 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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