Correlation Between Communication Cable and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Communication Cable 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 Communication Cable and Grand Kartech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Communication Cable Systems and Grand Kartech Tbk, you can compare the effects of market volatilities on Communication Cable 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 Communication Cable with a short position of Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Communication Cable and Grand Kartech.
Diversification Opportunities for Communication Cable and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Communication and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Communication Cable Systems 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 Communication Cable 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 Communication Cable Systems 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 Communication Cable i.e., Communication Cable and Grand Kartech go up and down completely randomly.
Pair Corralation between Communication Cable and Grand Kartech
If you would invest 25,000 in Communication Cable Systems on September 2, 2024 and sell it today you would earn a total of 600.00 from holding Communication Cable Systems or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Communication Cable Systems vs. Grand Kartech Tbk
Performance |
| Timeline |
| Communication Cable |
| Grand Kartech Tbk |
Communication Cable and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Communication Cable and Grand Kartech
The main advantage of trading using opposite Communication Cable and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Communication Cable 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.| Communication Cable vs. Berkah Prima Perkasa | Communication Cable vs. Hartadinata Abadi Tbk | Communication Cable vs. Estika Tata Tiara | Communication Cable vs. Garudafood Putra Putri |
| Grand Kartech vs. Nanotech Indonesia Global | Grand Kartech vs. Inocycle Technology Tbk | Grand Kartech vs. Indosterling Technomedia Tbk | Grand Kartech vs. Wintermar Offshore Marine |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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