Correlation Between Gunawan Dianjaya and Central Omega
Can any of the company-specific risk be diversified away by investing in both Gunawan Dianjaya and Central Omega 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 Central Omega 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 Central Omega Resources, you can compare the effects of market volatilities on Gunawan Dianjaya and Central Omega 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 Central Omega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunawan Dianjaya and Central Omega.
Diversification Opportunities for Gunawan Dianjaya and Central Omega
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gunawan and Central is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gunawan Dianjaya Steel and Central Omega Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Omega Resources 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 Central Omega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Omega Resources has no effect on the direction of Gunawan Dianjaya i.e., Gunawan Dianjaya and Central Omega go up and down completely randomly.
Pair Corralation between Gunawan Dianjaya and Central Omega
Assuming the 90 days trading horizon Gunawan Dianjaya Steel is expected to under-perform the Central Omega. But the stock apears to be less risky and, when comparing its historical volatility, Gunawan Dianjaya Steel is 1.19 times less risky than Central Omega. The stock trades about -0.02 of its potential returns per unit of risk. The Central Omega Resources is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,600 in Central Omega Resources on August 31, 2024 and sell it today you would earn a total of 12,200 from holding Central Omega Resources or generate 127.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Gunawan Dianjaya Steel vs. Central Omega Resources
Performance |
| Timeline |
| Gunawan Dianjaya Steel |
| Central Omega Resources |
Gunawan Dianjaya and Central Omega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunawan Dianjaya and Central Omega
The main advantage of trading using opposite Gunawan Dianjaya and Central Omega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunawan Dianjaya position performs unexpectedly, Central Omega 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 Central Omega will offset losses from the drop in Central Omega'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 |
| Central Omega vs. Cita Mineral Investindo | Central Omega vs. Intiland Development Tbk | Central Omega vs. J Resources Asia | Central Omega vs. Resource Alam Indonesia |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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