Correlation Between Galva Technologies and PT Charlie
Can any of the company-specific risk be diversified away by investing in both Galva Technologies and PT Charlie 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 PT Charlie 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 PT Charlie Hospital, you can compare the effects of market volatilities on Galva Technologies and PT Charlie 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 PT Charlie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galva Technologies and PT Charlie.
Diversification Opportunities for Galva Technologies and PT Charlie
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Galva and RSCH is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Galva Technologies Tbk and PT Charlie Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Charlie Hospital 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 PT Charlie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Charlie Hospital has no effect on the direction of Galva Technologies i.e., Galva Technologies and PT Charlie go up and down completely randomly.
Pair Corralation between Galva Technologies and PT Charlie
Assuming the 90 days trading horizon Galva Technologies is expected to generate 20.22 times less return on investment than PT Charlie. In addition to that, Galva Technologies is 1.0 times more volatile than PT Charlie Hospital. It trades about 0.0 of its total potential returns per unit of risk. PT Charlie Hospital is currently generating about 0.09 per unit of volatility. If you would invest 13,100 in PT Charlie Hospital on August 30, 2024 and sell it today you would earn a total of 20,300 from holding PT Charlie Hospital or generate 154.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 64.27% |
| Values | Daily Returns |
Galva Technologies Tbk vs. PT Charlie Hospital
Performance |
| Timeline |
| Galva Technologies Tbk |
| PT Charlie Hospital |
Galva Technologies and PT Charlie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galva Technologies and PT Charlie
The main advantage of trading using opposite Galva Technologies and PT Charlie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galva Technologies position performs unexpectedly, PT Charlie 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 PT Charlie will offset losses from the drop in PT Charlie'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 |
| PT Charlie vs. Bank Central Asia | PT Charlie vs. Bank Rakyat Indonesia | PT Charlie vs. Bayan Resources Tbk | PT Charlie vs. Bank Mandiri Persero |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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