Correlation Between Gunawan Dianjaya and Bekasi Fajar
Can any of the company-specific risk be diversified away by investing in both Gunawan Dianjaya and Bekasi Fajar 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 Bekasi Fajar 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 Bekasi Fajar Industrial, you can compare the effects of market volatilities on Gunawan Dianjaya and Bekasi Fajar 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 Bekasi Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunawan Dianjaya and Bekasi Fajar.
Diversification Opportunities for Gunawan Dianjaya and Bekasi Fajar
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gunawan and Bekasi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gunawan Dianjaya Steel and Bekasi Fajar Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Fajar Industrial 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 Bekasi Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Fajar Industrial has no effect on the direction of Gunawan Dianjaya i.e., Gunawan Dianjaya and Bekasi Fajar go up and down completely randomly.
Pair Corralation between Gunawan Dianjaya and Bekasi Fajar
Assuming the 90 days trading horizon Gunawan Dianjaya Steel is expected to under-perform the Bekasi Fajar. In addition to that, Gunawan Dianjaya is 2.02 times more volatile than Bekasi Fajar Industrial. It trades about -0.27 of its total potential returns per unit of risk. Bekasi Fajar Industrial is currently generating about -0.33 per unit of volatility. If you would invest 12,000 in Bekasi Fajar Industrial on September 1, 2024 and sell it today you would lose (1,600) from holding Bekasi Fajar Industrial or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunawan Dianjaya Steel vs. Bekasi Fajar Industrial
Performance |
| Timeline |
| Gunawan Dianjaya Steel |
| Bekasi Fajar Industrial |
Gunawan Dianjaya and Bekasi Fajar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunawan Dianjaya and Bekasi Fajar
The main advantage of trading using opposite Gunawan Dianjaya and Bekasi Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunawan Dianjaya position performs unexpectedly, Bekasi Fajar 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 Bekasi Fajar will offset losses from the drop in Bekasi Fajar's long position.| Gunawan Dianjaya vs. Perusahaan Gas Negara | Gunawan Dianjaya vs. Vale Indonesia Tbk | Gunawan Dianjaya vs. Telkom Indonesia Tbk | Gunawan Dianjaya vs. Mitra Pinasthika Mustika |
| Bekasi Fajar vs. Agung Podomoro Land | Bekasi Fajar vs. Surya Semesta Internusa | Bekasi Fajar vs. Alam Sutera Realty | Bekasi Fajar vs. Bumi Serpong Damai |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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