Correlation Between PT Gudang and Turning Point
Can any of the company-specific risk be diversified away by investing in both PT Gudang and Turning Point 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 PT Gudang and Turning Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Gudang Garam and Turning Point Brands, you can compare the effects of market volatilities on PT Gudang and Turning Point 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 PT Gudang with a short position of Turning Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Gudang and Turning Point.
Diversification Opportunities for PT Gudang and Turning Point
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GGNPF and Turning is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Gudang Garam and Turning Point Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turning Point Brands and PT Gudang 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 PT Gudang Garam are associated (or correlated) with Turning Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turning Point Brands has no effect on the direction of PT Gudang i.e., PT Gudang and Turning Point go up and down completely randomly.
Pair Corralation between PT Gudang and Turning Point
If you would invest 4,633 in Turning Point Brands on August 25, 2024 and sell it today you would earn a total of 1,632 from holding Turning Point Brands or generate 35.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Gudang Garam vs. Turning Point Brands
Performance |
| Timeline |
| PT Gudang Garam |
| Turning Point Brands |
PT Gudang and Turning Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Gudang and Turning Point
The main advantage of trading using opposite PT Gudang and Turning Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Gudang position performs unexpectedly, Turning Point 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 Turning Point will offset losses from the drop in Turning Point's long position.| PT Gudang vs. British American Tobacco | PT Gudang vs. Imperial Brands PLC | PT Gudang vs. RLX Technology | PT Gudang vs. British American Tobacco |
| Turning Point vs. Universal | Turning Point vs. Imperial Brands PLC | Turning Point vs. British American Tobacco | Turning Point vs. Philip Morris International |
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.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |