Correlation Between Gunung Raja and Ifishdeco
Can any of the company-specific risk be diversified away by investing in both Gunung Raja and Ifishdeco 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 Gunung Raja and Ifishdeco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunung Raja Paksi and Ifishdeco PT, you can compare the effects of market volatilities on Gunung Raja and Ifishdeco 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 Gunung Raja with a short position of Ifishdeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunung Raja and Ifishdeco.
Diversification Opportunities for Gunung Raja and Ifishdeco
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gunung and Ifishdeco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Gunung Raja Paksi and Ifishdeco PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ifishdeco PT and Gunung Raja 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 Gunung Raja Paksi are associated (or correlated) with Ifishdeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ifishdeco PT has no effect on the direction of Gunung Raja i.e., Gunung Raja and Ifishdeco go up and down completely randomly.
Pair Corralation between Gunung Raja and Ifishdeco
Assuming the 90 days trading horizon Gunung Raja Paksi is expected to generate 9.02 times more return on investment than Ifishdeco. However, Gunung Raja is 9.02 times more volatile than Ifishdeco PT. It trades about 0.02 of its potential returns per unit of risk. Ifishdeco PT is currently generating about -0.11 per unit of risk. If you would invest 28,500 in Gunung Raja Paksi on September 1, 2024 and sell it today you would lose (7,300) from holding Gunung Raja Paksi or give up 25.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gunung Raja Paksi vs. Ifishdeco PT
Performance |
| Timeline |
| Gunung Raja Paksi |
| Ifishdeco PT |
Gunung Raja and Ifishdeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunung Raja and Ifishdeco
The main advantage of trading using opposite Gunung Raja and Ifishdeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunung Raja position performs unexpectedly, Ifishdeco 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 Ifishdeco will offset losses from the drop in Ifishdeco's long position.| Gunung Raja vs. Gunawan Dianjaya Steel | Gunung Raja vs. Steel Pipe Industry | Gunung Raja vs. Impack Pratama Industri | Gunung Raja vs. Ifishdeco PT |
| Ifishdeco vs. Merdeka Copper Gold | Ifishdeco vs. Aneka Tambang Persero | Ifishdeco vs. Bumi Resources Minerals | Ifishdeco vs. Timah Persero 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |