Correlation Between GungHo Online and PT Gajah
Can any of the company-specific risk be diversified away by investing in both GungHo Online and PT Gajah 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 GungHo Online and PT Gajah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GungHo Online Entertainment and PT Gajah Tunggal, you can compare the effects of market volatilities on GungHo Online and PT Gajah 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 GungHo Online with a short position of PT Gajah. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and PT Gajah.
Diversification Opportunities for GungHo Online and PT Gajah
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GungHo and GH8 is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and PT Gajah Tunggal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gajah Tunggal and GungHo Online 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 GungHo Online Entertainment are associated (or correlated) with PT Gajah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gajah Tunggal has no effect on the direction of GungHo Online i.e., GungHo Online and PT Gajah go up and down completely randomly.
Pair Corralation between GungHo Online and PT Gajah
Assuming the 90 days horizon GungHo Online Entertainment is expected to under-perform the PT Gajah. But the stock apears to be less risky and, when comparing its historical volatility, GungHo Online Entertainment is 5.18 times less risky than PT Gajah. The stock trades about -0.13 of its potential returns per unit of risk. The PT Gajah Tunggal is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 6.05 in PT Gajah Tunggal on September 3, 2024 and sell it today you would lose (0.80) from holding PT Gajah Tunggal or give up 13.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. PT Gajah Tunggal
Performance |
| Timeline |
| GungHo Online Entert |
| PT Gajah Tunggal |
GungHo Online and PT Gajah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and PT Gajah
The main advantage of trading using opposite GungHo Online and PT Gajah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, PT Gajah 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 PT Gajah will offset losses from the drop in PT Gajah's long position.| GungHo Online vs. JIAHUA STORES | GungHo Online vs. FUYO GENERAL LEASE | GungHo Online vs. THORNEY TECHS LTD | GungHo Online vs. QURATE RETAIL INC |
| PT Gajah vs. URBAN OUTFITTERS | PT Gajah vs. SWISS WATER DECAFFCOFFEE | PT Gajah vs. Japan Asia Investment | PT Gajah vs. AM EAGLE OUTFITTERS |
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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