Correlation Between PT Gajah and SCANSOURCE (SC3SG)
Can any of the company-specific risk be diversified away by investing in both PT Gajah and SCANSOURCE (SC3SG) 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 Gajah and SCANSOURCE (SC3SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Gajah Tunggal and SCANSOURCE, you can compare the effects of market volatilities on PT Gajah and SCANSOURCE (SC3SG) 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 Gajah with a short position of SCANSOURCE (SC3SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Gajah and SCANSOURCE (SC3SG).
Diversification Opportunities for PT Gajah and SCANSOURCE (SC3SG)
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GH8 and SCANSOURCE is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding PT Gajah Tunggal and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE (SC3SG) and PT Gajah 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 Gajah Tunggal are associated (or correlated) with SCANSOURCE (SC3SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE (SC3SG) has no effect on the direction of PT Gajah i.e., PT Gajah and SCANSOURCE (SC3SG) go up and down completely randomly.
Pair Corralation between PT Gajah and SCANSOURCE (SC3SG)
Assuming the 90 days horizon PT Gajah Tunggal is expected to under-perform the SCANSOURCE (SC3SG). In addition to that, PT Gajah is 4.1 times more volatile than SCANSOURCE. It trades about 0.0 of its total potential returns per unit of risk. SCANSOURCE is currently generating about 0.26 per unit of volatility. If you would invest 4,080 in SCANSOURCE on September 3, 2024 and sell it today you would earn a total of 660.00 from holding SCANSOURCE or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Gajah Tunggal vs. SCANSOURCE
Performance |
| Timeline |
| PT Gajah Tunggal |
| SCANSOURCE (SC3SG) |
PT Gajah and SCANSOURCE (SC3SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Gajah and SCANSOURCE (SC3SG)
The main advantage of trading using opposite PT Gajah and SCANSOURCE (SC3SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Gajah position performs unexpectedly, SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG) will offset losses from the drop in SCANSOURCE (SC3SG)'s long position.| PT Gajah vs. URBAN OUTFITTERS | PT Gajah vs. SWISS WATER DECAFFCOFFEE | PT Gajah vs. Japan Asia Investment | PT Gajah vs. AM EAGLE OUTFITTERS |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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