Correlation Between GUDANG GARAM and ATHENE HOLDING
Can any of the company-specific risk be diversified away by investing in both GUDANG GARAM and ATHENE HOLDING 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 GUDANG GARAM and ATHENE HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GUDANG GARAM and ATHENE HOLDING PRFSERC, you can compare the effects of market volatilities on GUDANG GARAM and ATHENE HOLDING 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 GUDANG GARAM with a short position of ATHENE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUDANG GARAM and ATHENE HOLDING.
Diversification Opportunities for GUDANG GARAM and ATHENE HOLDING
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUDANG and ATHENE is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding GUDANG GARAM and ATHENE HOLDING PRFSERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HOLDING PRFSERC and GUDANG GARAM 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 GUDANG GARAM are associated (or correlated) with ATHENE HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HOLDING PRFSERC has no effect on the direction of GUDANG GARAM i.e., GUDANG GARAM and ATHENE HOLDING go up and down completely randomly.
Pair Corralation between GUDANG GARAM and ATHENE HOLDING
Assuming the 90 days trading horizon GUDANG GARAM is expected to under-perform the ATHENE HOLDING. In addition to that, GUDANG GARAM is 1.71 times more volatile than ATHENE HOLDING PRFSERC. It trades about -0.09 of its total potential returns per unit of risk. ATHENE HOLDING PRFSERC is currently generating about 0.21 per unit of volatility. If you would invest 2,280 in ATHENE HOLDING PRFSERC on September 3, 2024 and sell it today you would earn a total of 80.00 from holding ATHENE HOLDING PRFSERC or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUDANG GARAM vs. ATHENE HOLDING PRFSERC
Performance |
| Timeline |
| GUDANG GARAM |
| ATHENE HOLDING PRFSERC |
GUDANG GARAM and ATHENE HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUDANG GARAM and ATHENE HOLDING
The main advantage of trading using opposite GUDANG GARAM and ATHENE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUDANG GARAM position performs unexpectedly, ATHENE HOLDING 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 ATHENE HOLDING will offset losses from the drop in ATHENE HOLDING's long position.| GUDANG GARAM vs. Thai Beverage Public | GUDANG GARAM vs. Cal Maine Foods | GUDANG GARAM vs. Harmony Gold Mining | GUDANG GARAM vs. GALENA MINING LTD |
| ATHENE HOLDING vs. Berkshire Hathaway | ATHENE HOLDING vs. Allianz SE VNA | ATHENE HOLDING vs. AXA SA | ATHENE HOLDING vs. AXA SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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