Correlation Between Delta Dunia and Gajah Tunggal
Can any of the company-specific risk be diversified away by investing in both Delta Dunia and Gajah Tunggal 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 Delta Dunia and Gajah Tunggal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Dunia Makmur and Gajah Tunggal Tbk, you can compare the effects of market volatilities on Delta Dunia and Gajah Tunggal 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 Delta Dunia with a short position of Gajah Tunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Dunia and Gajah Tunggal.
Diversification Opportunities for Delta Dunia and Gajah Tunggal
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Delta and Gajah is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Delta Dunia Makmur and Gajah Tunggal Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gajah Tunggal Tbk and Delta Dunia 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 Delta Dunia Makmur are associated (or correlated) with Gajah Tunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gajah Tunggal Tbk has no effect on the direction of Delta Dunia i.e., Delta Dunia and Gajah Tunggal go up and down completely randomly.
Pair Corralation between Delta Dunia and Gajah Tunggal
Assuming the 90 days trading horizon Delta Dunia Makmur is expected to generate 1.14 times more return on investment than Gajah Tunggal. However, Delta Dunia is 1.14 times more volatile than Gajah Tunggal Tbk. It trades about 0.09 of its potential returns per unit of risk. Gajah Tunggal Tbk is currently generating about 0.05 per unit of risk. If you would invest 53,973 in Delta Dunia Makmur on August 28, 2024 and sell it today you would earn a total of 16,527 from holding Delta Dunia Makmur or generate 30.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Dunia Makmur vs. Gajah Tunggal Tbk
Performance |
| Timeline |
| Delta Dunia Makmur |
| Gajah Tunggal Tbk |
Delta Dunia and Gajah Tunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Dunia and Gajah Tunggal
The main advantage of trading using opposite Delta Dunia and Gajah Tunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Dunia position performs unexpectedly, Gajah Tunggal 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 Gajah Tunggal will offset losses from the drop in Gajah Tunggal's long position.| Delta Dunia vs. Indika Energy Tbk | Delta Dunia vs. Elnusa Tbk | Delta Dunia vs. Harum Energy Tbk | Delta Dunia vs. Energi Mega Persada |
| Gajah Tunggal vs. Perusahaan Perkebunan London | Gajah Tunggal vs. Solusi Bangun Indonesia | Gajah Tunggal vs. Ciputra Development Tbk | Gajah Tunggal vs. Global Mediacom 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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