Correlation Between Gajah Tunggal and Nusantara Infrastructure
Can any of the company-specific risk be diversified away by investing in both Gajah Tunggal and Nusantara Infrastructure 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 Nusantara Infrastructure 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 Nusantara Infrastructure Tbk, you can compare the effects of market volatilities on Gajah Tunggal and Nusantara Infrastructure 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 Nusantara Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gajah Tunggal and Nusantara Infrastructure.
Diversification Opportunities for Gajah Tunggal and Nusantara Infrastructure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gajah and Nusantara is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gajah Tunggal Tbk and Nusantara Infrastructure Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusantara Infrastructure 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 Nusantara Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusantara Infrastructure has no effect on the direction of Gajah Tunggal i.e., Gajah Tunggal and Nusantara Infrastructure go up and down completely randomly.
Pair Corralation between Gajah Tunggal and Nusantara Infrastructure
If you would invest 23,800 in Nusantara Infrastructure Tbk on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Nusantara Infrastructure Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gajah Tunggal Tbk vs. Nusantara Infrastructure Tbk
Performance |
| Timeline |
| Gajah Tunggal Tbk |
| Nusantara Infrastructure |
Gajah Tunggal and Nusantara Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gajah Tunggal and Nusantara Infrastructure
The main advantage of trading using opposite Gajah Tunggal and Nusantara Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gajah Tunggal position performs unexpectedly, Nusantara Infrastructure 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 Nusantara Infrastructure will offset losses from the drop in Nusantara Infrastructure's long position.| Gajah Tunggal vs. Perusahaan Perkebunan London | Gajah Tunggal vs. Solusi Bangun Indonesia | Gajah Tunggal vs. Ciputra Development Tbk | Gajah Tunggal vs. Global Mediacom Tbk |
| Nusantara Infrastructure vs. Rukun Raharja Tbk | Nusantara Infrastructure vs. Weha Transportasi Indonesia |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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