Correlation Between Gajah Tunggal and Akr Corporindo
Can any of the company-specific risk be diversified away by investing in both Gajah Tunggal and Akr Corporindo 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 Gajah Tunggal and Akr Corporindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gajah Tunggal Tbk and Akr Corporindo Tbk, you can compare the effects of market volatilities on Gajah Tunggal and Akr Corporindo 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 Gajah Tunggal with a short position of Akr Corporindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gajah Tunggal and Akr Corporindo.
Diversification Opportunities for Gajah Tunggal and Akr Corporindo
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gajah and Akr is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gajah Tunggal Tbk and Akr Corporindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akr Corporindo Tbk and Gajah Tunggal 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 Gajah Tunggal Tbk are associated (or correlated) with Akr Corporindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akr Corporindo Tbk has no effect on the direction of Gajah Tunggal i.e., Gajah Tunggal and Akr Corporindo go up and down completely randomly.
Pair Corralation between Gajah Tunggal and Akr Corporindo
Assuming the 90 days trading horizon Gajah Tunggal Tbk is expected to generate 1.59 times more return on investment than Akr Corporindo. However, Gajah Tunggal is 1.59 times more volatile than Akr Corporindo Tbk. It trades about 0.06 of its potential returns per unit of risk. Akr Corporindo Tbk is currently generating about 0.01 per unit of risk. If you would invest 54,146 in Gajah Tunggal Tbk on September 2, 2024 and sell it today you would earn a total of 59,854 from holding Gajah Tunggal Tbk or generate 110.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Gajah Tunggal Tbk vs. Akr Corporindo Tbk
Performance |
| Timeline |
| Gajah Tunggal Tbk |
| Akr Corporindo Tbk |
Gajah Tunggal and Akr Corporindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gajah Tunggal and Akr Corporindo
The main advantage of trading using opposite Gajah Tunggal and Akr Corporindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gajah Tunggal position performs unexpectedly, Akr Corporindo 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 Akr Corporindo will offset losses from the drop in Akr Corporindo's long position.| Gajah Tunggal vs. Japfa Comfeed Indonesia | Gajah Tunggal vs. Charoen Pokphand Indonesia | Gajah Tunggal vs. Erajaya Swasembada Tbk | Gajah Tunggal vs. Indofood Cbp Sukses |
| Akr Corporindo vs. Matahari Department Store | Akr Corporindo vs. Multi Medika Internasional | Akr Corporindo vs. Visi Media Asia | Akr Corporindo vs. Bayan Resources 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |