Correlation Between Gunawan Dianjaya and Betonjaya Manunggal
Can any of the company-specific risk be diversified away by investing in both Gunawan Dianjaya and Betonjaya Manunggal 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 Betonjaya Manunggal 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 Betonjaya Manunggal Tbk, you can compare the effects of market volatilities on Gunawan Dianjaya and Betonjaya Manunggal 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 Betonjaya Manunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunawan Dianjaya and Betonjaya Manunggal.
Diversification Opportunities for Gunawan Dianjaya and Betonjaya Manunggal
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gunawan and Betonjaya is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gunawan Dianjaya Steel and Betonjaya Manunggal Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betonjaya Manunggal Tbk 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 Betonjaya Manunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betonjaya Manunggal Tbk has no effect on the direction of Gunawan Dianjaya i.e., Gunawan Dianjaya and Betonjaya Manunggal go up and down completely randomly.
Pair Corralation between Gunawan Dianjaya and Betonjaya Manunggal
Assuming the 90 days trading horizon Gunawan Dianjaya Steel is expected to under-perform the Betonjaya Manunggal. In addition to that, Gunawan Dianjaya is 1.15 times more volatile than Betonjaya Manunggal Tbk. It trades about -0.02 of its total potential returns per unit of risk. Betonjaya Manunggal Tbk is currently generating about 0.0 per unit of volatility. If you would invest 42,257 in Betonjaya Manunggal Tbk on August 31, 2024 and sell it today you would lose (3,057) from holding Betonjaya Manunggal Tbk or give up 7.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Gunawan Dianjaya Steel vs. Betonjaya Manunggal Tbk
Performance |
| Timeline |
| Gunawan Dianjaya Steel |
| Betonjaya Manunggal Tbk |
Gunawan Dianjaya and Betonjaya Manunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunawan Dianjaya and Betonjaya Manunggal
The main advantage of trading using opposite Gunawan Dianjaya and Betonjaya Manunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunawan Dianjaya position performs unexpectedly, Betonjaya Manunggal 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 Betonjaya Manunggal will offset losses from the drop in Betonjaya Manunggal'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 |
| Betonjaya Manunggal vs. Alumindo Light Metal | Betonjaya Manunggal vs. Duta Pertiwi Nusantara | Betonjaya Manunggal vs. Berlina Tbk | Betonjaya Manunggal vs. Asiaplast Industries 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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