Correlation Between Gunawan Dianjaya and Yelooo Integra
Can any of the company-specific risk be diversified away by investing in both Gunawan Dianjaya and Yelooo Integra 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 Yelooo Integra 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 Yelooo Integra Datanet, you can compare the effects of market volatilities on Gunawan Dianjaya and Yelooo Integra 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 Yelooo Integra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunawan Dianjaya and Yelooo Integra.
Diversification Opportunities for Gunawan Dianjaya and Yelooo Integra
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gunawan and Yelooo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gunawan Dianjaya Steel and Yelooo Integra Datanet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelooo Integra Datanet 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 Yelooo Integra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelooo Integra Datanet has no effect on the direction of Gunawan Dianjaya i.e., Gunawan Dianjaya and Yelooo Integra go up and down completely randomly.
Pair Corralation between Gunawan Dianjaya and Yelooo Integra
Assuming the 90 days trading horizon Gunawan Dianjaya Steel is expected to generate 0.73 times more return on investment than Yelooo Integra. However, Gunawan Dianjaya Steel is 1.38 times less risky than Yelooo Integra. It trades about -0.02 of its potential returns per unit of risk. Yelooo Integra Datanet is currently generating about -0.07 per unit of risk. If you would invest 13,098 in Gunawan Dianjaya Steel on September 2, 2024 and sell it today you would lose (4,098) from holding Gunawan Dianjaya Steel or give up 31.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunawan Dianjaya Steel vs. Yelooo Integra Datanet
Performance |
| Timeline |
| Gunawan Dianjaya Steel |
| Yelooo Integra Datanet |
Gunawan Dianjaya and Yelooo Integra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunawan Dianjaya and Yelooo Integra
The main advantage of trading using opposite Gunawan Dianjaya and Yelooo Integra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunawan Dianjaya position performs unexpectedly, Yelooo Integra 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 Yelooo Integra will offset losses from the drop in Yelooo Integra'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 |
| Yelooo Integra vs. Envy Technologies Indonesia | Yelooo Integra vs. Eastparc Hotel Tbk | Yelooo Integra vs. PT Jobubu Jarum | Yelooo Integra vs. Inocycle Technology 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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