Correlation Between Capital Financial and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Capital Financial and Grand Kartech 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 Capital Financial and Grand Kartech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Financial Indonesia and Grand Kartech Tbk, you can compare the effects of market volatilities on Capital Financial and Grand Kartech 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 Capital Financial with a short position of Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Financial and Grand Kartech.
Diversification Opportunities for Capital Financial and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capital Financial Indonesia and Grand Kartech Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Kartech Tbk and Capital Financial 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 Capital Financial Indonesia are associated (or correlated) with Grand Kartech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Kartech Tbk has no effect on the direction of Capital Financial i.e., Capital Financial and Grand Kartech go up and down completely randomly.
Pair Corralation between Capital Financial and Grand Kartech
If you would invest 43,600 in Grand Kartech Tbk on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Grand Kartech Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Financial Indonesia vs. Grand Kartech Tbk
Performance |
| Timeline |
| Capital Financial |
| Grand Kartech Tbk |
Capital Financial and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Financial and Grand Kartech
The main advantage of trading using opposite Capital Financial and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Financial position performs unexpectedly, Grand Kartech 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 Grand Kartech will offset losses from the drop in Grand Kartech's long position.| Capital Financial vs. Pacific Strategic Financial | Capital Financial vs. Bk Harda Internasional | Capital Financial vs. Indoritel Makmur Internasional | Capital Financial vs. Bank Sinarmas Tbk |
| Grand Kartech vs. Indointernet Tbk PT | Grand Kartech vs. Capital Financial Indonesia | Grand Kartech vs. Bank Ocbc Nisp | Grand Kartech vs. Inocycle Technology 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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