Correlation Between Champ Resto and GTS Internasional
Can any of the company-specific risk be diversified away by investing in both Champ Resto 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 Champ Resto and GTS Internasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champ Resto Indonesia and GTS Internasional Tbk, you can compare the effects of market volatilities on Champ Resto 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 Champ Resto with a short position of GTS Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champ Resto and GTS Internasional.
Diversification Opportunities for Champ Resto and GTS Internasional
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Champ and GTS is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Champ Resto Indonesia 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 Champ Resto 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 Champ Resto Indonesia 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 Champ Resto i.e., Champ Resto and GTS Internasional go up and down completely randomly.
Pair Corralation between Champ Resto and GTS Internasional
Assuming the 90 days trading horizon Champ Resto Indonesia is expected to under-perform the GTS Internasional. In addition to that, Champ Resto is 1.0 times more volatile than GTS Internasional Tbk. It trades about -0.09 of its total potential returns per unit of risk. GTS Internasional Tbk is currently generating about -0.03 per unit of volatility. If you would invest 6,100 in GTS Internasional Tbk on August 27, 2024 and sell it today you would lose (2,700) from holding GTS Internasional Tbk or give up 44.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champ Resto Indonesia vs. GTS Internasional Tbk
Performance |
| Timeline |
| Champ Resto Indonesia |
| GTS Internasional Tbk |
Champ Resto and GTS Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champ Resto and GTS Internasional
The main advantage of trading using opposite Champ Resto and GTS Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champ Resto 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.| Champ Resto vs. Autopedia Sukses Lestari | Champ Resto vs. Adaro Minerals Indonesia | Champ Resto vs. Cisarua Mountain Dairy | Champ Resto vs. Avia Avian PT |
| GTS Internasional vs. PT Dewi Shri | GTS Internasional vs. Habco Trans Maritima | GTS Internasional vs. PT Hasnur Internasional | GTS Internasional vs. PT Toba Surimi |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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