Correlation Between GTS Internasional and Sepeda Bersama
Can any of the company-specific risk be diversified away by investing in both GTS Internasional and Sepeda Bersama 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 GTS Internasional and Sepeda Bersama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GTS Internasional Tbk and Sepeda Bersama Indonesia, you can compare the effects of market volatilities on GTS Internasional and Sepeda Bersama 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 GTS Internasional with a short position of Sepeda Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTS Internasional and Sepeda Bersama.
Diversification Opportunities for GTS Internasional and Sepeda Bersama
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GTS and Sepeda is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding GTS Internasional Tbk and Sepeda Bersama Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sepeda Bersama Indonesia and GTS Internasional 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 GTS Internasional Tbk are associated (or correlated) with Sepeda Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sepeda Bersama Indonesia has no effect on the direction of GTS Internasional i.e., GTS Internasional and Sepeda Bersama go up and down completely randomly.
Pair Corralation between GTS Internasional and Sepeda Bersama
Assuming the 90 days trading horizon GTS Internasional Tbk is expected to under-perform the Sepeda Bersama. In addition to that, GTS Internasional is 1.64 times more volatile than Sepeda Bersama Indonesia. It trades about -0.28 of its total potential returns per unit of risk. Sepeda Bersama Indonesia is currently generating about -0.26 per unit of volatility. If you would invest 55,500 in Sepeda Bersama Indonesia on August 30, 2024 and sell it today you would lose (4,000) from holding Sepeda Bersama Indonesia or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTS Internasional Tbk vs. Sepeda Bersama Indonesia
Performance |
| Timeline |
| GTS Internasional Tbk |
| Sepeda Bersama Indonesia |
GTS Internasional and Sepeda Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTS Internasional and Sepeda Bersama
The main advantage of trading using opposite GTS Internasional and Sepeda Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTS Internasional position performs unexpectedly, Sepeda Bersama 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 Sepeda Bersama will offset losses from the drop in Sepeda Bersama's long position.| GTS Internasional vs. PT Hasnur Internasional | GTS Internasional vs. Archi Indonesia Tbk | GTS Internasional vs. Cemindo Gemilang Tbk | GTS Internasional vs. PAM Mineral Tbk |
| Sepeda Bersama vs. Autopedia Sukses Lestari | Sepeda Bersama vs. Champ Resto Indonesia | Sepeda Bersama vs. Adhi Commuter Properti | Sepeda Bersama vs. GTS Internasional 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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