Correlation Between Gunawan Dianjaya and Totalindo Eka
Can any of the company-specific risk be diversified away by investing in both Gunawan Dianjaya and Totalindo Eka 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 Totalindo Eka 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 Totalindo Eka Persada, you can compare the effects of market volatilities on Gunawan Dianjaya and Totalindo Eka 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 Totalindo Eka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunawan Dianjaya and Totalindo Eka.
Diversification Opportunities for Gunawan Dianjaya and Totalindo Eka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gunawan and Totalindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gunawan Dianjaya Steel and Totalindo Eka Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Totalindo Eka Persada 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 Totalindo Eka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Totalindo Eka Persada has no effect on the direction of Gunawan Dianjaya i.e., Gunawan Dianjaya and Totalindo Eka go up and down completely randomly.
Pair Corralation between Gunawan Dianjaya and Totalindo Eka
If you would invest 100.00 in Totalindo Eka Persada on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Totalindo Eka Persada or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Gunawan Dianjaya Steel vs. Totalindo Eka Persada
Performance |
| Timeline |
| Gunawan Dianjaya Steel |
| Totalindo Eka Persada |
Gunawan Dianjaya and Totalindo Eka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunawan Dianjaya and Totalindo Eka
The main advantage of trading using opposite Gunawan Dianjaya and Totalindo Eka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunawan Dianjaya position performs unexpectedly, Totalindo Eka 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 Totalindo Eka will offset losses from the drop in Totalindo Eka's long position.| Gunawan Dianjaya vs. Betonjaya Manunggal Tbk | Gunawan Dianjaya vs. Lotte Chemical Titan | Gunawan Dianjaya vs. Indopoly Swakarsa Industry | Gunawan Dianjaya vs. Saranacentral Bajatama Tbk |
| Totalindo Eka vs. Metro Healthcare Indonesia | Totalindo Eka vs. Siloam International Hospitals | Totalindo Eka vs. Indo Acidatama Tbk | Totalindo Eka vs. PT Data Sinergitama |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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