Correlation Between Gunawan Dianjaya and Pacific Strategic
Can any of the company-specific risk be diversified away by investing in both Gunawan Dianjaya and Pacific Strategic 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 Gunawan Dianjaya and Pacific Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunawan Dianjaya Steel and Pacific Strategic Financial, you can compare the effects of market volatilities on Gunawan Dianjaya and Pacific Strategic 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 Gunawan Dianjaya with a short position of Pacific Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunawan Dianjaya and Pacific Strategic.
Diversification Opportunities for Gunawan Dianjaya and Pacific Strategic
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gunawan and Pacific is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gunawan Dianjaya Steel and Pacific Strategic Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Strategic and Gunawan Dianjaya 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 Gunawan Dianjaya Steel are associated (or correlated) with Pacific Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Strategic has no effect on the direction of Gunawan Dianjaya i.e., Gunawan Dianjaya and Pacific Strategic go up and down completely randomly.
Pair Corralation between Gunawan Dianjaya and Pacific Strategic
Assuming the 90 days trading horizon Gunawan Dianjaya Steel is expected to under-perform the Pacific Strategic. In addition to that, Gunawan Dianjaya is 2.87 times more volatile than Pacific Strategic Financial. It trades about -0.02 of its total potential returns per unit of risk. Pacific Strategic Financial is currently generating about -0.01 per unit of volatility. If you would invest 111,000 in Pacific Strategic Financial on September 2, 2024 and sell it today you would lose (9,500) from holding Pacific Strategic Financial or give up 8.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunawan Dianjaya Steel vs. Pacific Strategic Financial
Performance |
| Timeline |
| Gunawan Dianjaya Steel |
| Pacific Strategic |
Gunawan Dianjaya and Pacific Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunawan Dianjaya and Pacific Strategic
The main advantage of trading using opposite Gunawan Dianjaya and Pacific Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunawan Dianjaya position performs unexpectedly, Pacific Strategic 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 Pacific Strategic will offset losses from the drop in Pacific Strategic's long position.| Gunawan Dianjaya vs. Perusahaan Gas Negara | Gunawan Dianjaya vs. Telkom Indonesia Tbk | Gunawan Dianjaya vs. Mitra Pinasthika Mustika | Gunawan Dianjaya vs. Jakarta Int Hotels |
| Pacific Strategic vs. Asuransi Harta Aman | Pacific Strategic vs. Asuransi Bintang Tbk | Pacific Strategic vs. Mnc Kapital Indonesia | Pacific Strategic vs. Arthavest 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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