Correlation Between Geoprima Solusi and PT Techno9
Can any of the company-specific risk be diversified away by investing in both Geoprima Solusi and PT Techno9 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 Geoprima Solusi and PT Techno9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geoprima Solusi Tbk and PT Techno9 Indonesia, you can compare the effects of market volatilities on Geoprima Solusi and PT Techno9 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 Geoprima Solusi with a short position of PT Techno9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geoprima Solusi and PT Techno9.
Diversification Opportunities for Geoprima Solusi and PT Techno9
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Geoprima and NINE is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Geoprima Solusi Tbk and PT Techno9 Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Techno9 Indonesia and Geoprima Solusi 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 Geoprima Solusi Tbk are associated (or correlated) with PT Techno9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Techno9 Indonesia has no effect on the direction of Geoprima Solusi i.e., Geoprima Solusi and PT Techno9 go up and down completely randomly.
Pair Corralation between Geoprima Solusi and PT Techno9
Assuming the 90 days trading horizon Geoprima Solusi Tbk is expected to generate 4.22 times more return on investment than PT Techno9. However, Geoprima Solusi is 4.22 times more volatile than PT Techno9 Indonesia. It trades about 0.09 of its potential returns per unit of risk. PT Techno9 Indonesia is currently generating about 0.23 per unit of risk. If you would invest 35,000 in Geoprima Solusi Tbk on November 28, 2024 and sell it today you would earn a total of 3,000 from holding Geoprima Solusi Tbk or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geoprima Solusi Tbk vs. PT Techno9 Indonesia
Performance |
| Timeline |
| Geoprima Solusi Tbk |
| PT Techno9 Indonesia |
Geoprima Solusi and PT Techno9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geoprima Solusi and PT Techno9
The main advantage of trading using opposite Geoprima Solusi and PT Techno9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geoprima Solusi position performs unexpectedly, PT Techno9 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 Techno9 will offset losses from the drop in PT Techno9's long position.| Geoprima Solusi vs. Pacific Strategic Financial | Geoprima Solusi vs. Garuda Metalindo Tbk | Geoprima Solusi vs. Metrodata Electronics Tbk | Geoprima Solusi vs. Lippo General Insurance |
| PT Techno9 vs. Ace Hardware Indonesia | PT Techno9 vs. Garuda Metalindo Tbk | PT Techno9 vs. Lippo General Insurance | PT Techno9 vs. Pacific Strategic Financial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |