Correlation Between Gema Grahasarana and Enseval Putra
Can any of the company-specific risk be diversified away by investing in both Gema Grahasarana and Enseval Putra 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 Gema Grahasarana and Enseval Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gema Grahasarana Tbk and Enseval Putra Megatrading, you can compare the effects of market volatilities on Gema Grahasarana and Enseval Putra 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 Gema Grahasarana with a short position of Enseval Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gema Grahasarana and Enseval Putra.
Diversification Opportunities for Gema Grahasarana and Enseval Putra
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gema and Enseval is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gema Grahasarana Tbk and Enseval Putra Megatrading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enseval Putra Megatrading and Gema Grahasarana 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 Gema Grahasarana Tbk are associated (or correlated) with Enseval Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enseval Putra Megatrading has no effect on the direction of Gema Grahasarana i.e., Gema Grahasarana and Enseval Putra go up and down completely randomly.
Pair Corralation between Gema Grahasarana and Enseval Putra
Assuming the 90 days trading horizon Gema Grahasarana Tbk is expected to under-perform the Enseval Putra. In addition to that, Gema Grahasarana is 4.21 times more volatile than Enseval Putra Megatrading. It trades about -0.01 of its total potential returns per unit of risk. Enseval Putra Megatrading is currently generating about 0.0 per unit of volatility. If you would invest 241,000 in Enseval Putra Megatrading on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Enseval Putra Megatrading or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Gema Grahasarana Tbk vs. Enseval Putra Megatrading
Performance |
| Timeline |
| Gema Grahasarana Tbk |
| Enseval Putra Megatrading |
Gema Grahasarana and Enseval Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gema Grahasarana and Enseval Putra
The main advantage of trading using opposite Gema Grahasarana and Enseval Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gema Grahasarana position performs unexpectedly, Enseval Putra 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 Enseval Putra will offset losses from the drop in Enseval Putra's long position.| Gema Grahasarana vs. Fortune Indonesia Tbk | Gema Grahasarana vs. Fks Multi Agro | Gema Grahasarana vs. Bayu Buana Tbk | Gema Grahasarana vs. Fast Food Indonesia |
| Enseval Putra vs. Astra Graphia Tbk | Enseval Putra vs. Hexindo Adiperkasa Tbk | Enseval Putra vs. Lautan Luas Tbk | Enseval Putra vs. Citra Marga Nusaphala |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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