Correlation Between Galva Technologies and Protech Mitra
Can any of the company-specific risk be diversified away by investing in both Galva Technologies and Protech Mitra 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 Galva Technologies and Protech Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galva Technologies Tbk and Protech Mitra Perkasa, you can compare the effects of market volatilities on Galva Technologies and Protech Mitra 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 Galva Technologies with a short position of Protech Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galva Technologies and Protech Mitra.
Diversification Opportunities for Galva Technologies and Protech Mitra
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galva and Protech is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Galva Technologies Tbk and Protech Mitra Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protech Mitra Perkasa and Galva Technologies 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 Galva Technologies Tbk are associated (or correlated) with Protech Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protech Mitra Perkasa has no effect on the direction of Galva Technologies i.e., Galva Technologies and Protech Mitra go up and down completely randomly.
Pair Corralation between Galva Technologies and Protech Mitra
Assuming the 90 days trading horizon Galva Technologies Tbk is expected to under-perform the Protech Mitra. In addition to that, Galva Technologies is 1.12 times more volatile than Protech Mitra Perkasa. It trades about 0.0 of its total potential returns per unit of risk. Protech Mitra Perkasa is currently generating about 0.01 per unit of volatility. If you would invest 16,000 in Protech Mitra Perkasa on August 27, 2024 and sell it today you would lose (2,900) from holding Protech Mitra Perkasa or give up 18.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galva Technologies Tbk vs. Protech Mitra Perkasa
Performance |
| Timeline |
| Galva Technologies Tbk |
| Protech Mitra Perkasa |
Galva Technologies and Protech Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galva Technologies and Protech Mitra
The main advantage of trading using opposite Galva Technologies and Protech Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galva Technologies position performs unexpectedly, Protech Mitra 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 Protech Mitra will offset losses from the drop in Protech Mitra's long position.| Galva Technologies vs. Multipolar Technology Tbk | Galva Technologies vs. Nusantara Voucher Distribution | Galva Technologies vs. Hensel Davest Indonesia | Galva Technologies vs. Anabatic Technologies 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |