Correlation Between Aksara Global and Greenwood Sejahtera
Can any of the company-specific risk be diversified away by investing in both Aksara Global and Greenwood Sejahtera 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 Aksara Global and Greenwood Sejahtera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aksara Global Development and Greenwood Sejahtera Tbk, you can compare the effects of market volatilities on Aksara Global and Greenwood Sejahtera 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 Aksara Global with a short position of Greenwood Sejahtera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksara Global and Greenwood Sejahtera.
Diversification Opportunities for Aksara Global and Greenwood Sejahtera
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aksara and Greenwood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aksara Global Development and Greenwood Sejahtera Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenwood Sejahtera Tbk and Aksara Global 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 Aksara Global Development are associated (or correlated) with Greenwood Sejahtera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenwood Sejahtera Tbk has no effect on the direction of Aksara Global i.e., Aksara Global and Greenwood Sejahtera go up and down completely randomly.
Pair Corralation between Aksara Global and Greenwood Sejahtera
Assuming the 90 days trading horizon Aksara Global Development is expected to under-perform the Greenwood Sejahtera. But the stock apears to be less risky and, when comparing its historical volatility, Aksara Global Development is 1.37 times less risky than Greenwood Sejahtera. The stock trades about -0.17 of its potential returns per unit of risk. The Greenwood Sejahtera Tbk is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 15,400 in Greenwood Sejahtera Tbk on August 27, 2024 and sell it today you would lose (2,200) from holding Greenwood Sejahtera Tbk or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.77% |
| Values | Daily Returns |
Aksara Global Development vs. Greenwood Sejahtera Tbk
Performance |
| Timeline |
| Aksara Global Development |
| Greenwood Sejahtera Tbk |
Aksara Global and Greenwood Sejahtera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aksara Global and Greenwood Sejahtera
The main advantage of trading using opposite Aksara Global and Greenwood Sejahtera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksara Global position performs unexpectedly, Greenwood Sejahtera 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 Greenwood Sejahtera will offset losses from the drop in Greenwood Sejahtera's long position.| Aksara Global vs. Greenwood Sejahtera Tbk | Aksara Global vs. Perdana Gapura Prima | Aksara Global vs. Bekasi Asri Pemula | Aksara Global vs. Megapolitan Developments Tbk |
| Greenwood Sejahtera vs. Metropolitan Land Tbk | Greenwood Sejahtera vs. Perdana Gapura Prima | Greenwood Sejahtera vs. Megapolitan Developments Tbk | Greenwood Sejahtera vs. Intiland Development 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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