Correlation Between Gema Grahasarana and Inter Delta
Can any of the company-specific risk be diversified away by investing in both Gema Grahasarana and Inter Delta 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 Inter Delta 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 Inter Delta Tbk, you can compare the effects of market volatilities on Gema Grahasarana and Inter Delta 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 Inter Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gema Grahasarana and Inter Delta.
Diversification Opportunities for Gema Grahasarana and Inter Delta
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gema and Inter is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Gema Grahasarana Tbk and Inter Delta Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Delta Tbk 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 Inter Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Delta Tbk has no effect on the direction of Gema Grahasarana i.e., Gema Grahasarana and Inter Delta go up and down completely randomly.
Pair Corralation between Gema Grahasarana and Inter Delta
Assuming the 90 days trading horizon Gema Grahasarana Tbk is expected to under-perform the Inter Delta. But the stock apears to be less risky and, when comparing its historical volatility, Gema Grahasarana Tbk is 3.97 times less risky than Inter Delta. The stock trades about -0.27 of its potential returns per unit of risk. The Inter Delta Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 19,700 in Inter Delta Tbk on August 30, 2024 and sell it today you would lose (1,100) from holding Inter Delta Tbk or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gema Grahasarana Tbk vs. Inter Delta Tbk
Performance |
| Timeline |
| Gema Grahasarana Tbk |
| Inter Delta Tbk |
Gema Grahasarana and Inter Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gema Grahasarana and Inter Delta
The main advantage of trading using opposite Gema Grahasarana and Inter Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gema Grahasarana position performs unexpectedly, Inter Delta 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 Inter Delta will offset losses from the drop in Inter Delta'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 |
| Inter Delta vs. Intraco Penta Tbk | Inter Delta vs. Jakarta Setiabudi Internasional | Inter Delta vs. Perdana Bangun Pusaka | Inter Delta vs. Gema Grahasarana 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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