Correlation Between GTS Internasional and Bintang Samudera
Can any of the company-specific risk be diversified away by investing in both GTS Internasional and Bintang Samudera 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 Bintang Samudera 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 Bintang Samudera Mandiri, you can compare the effects of market volatilities on GTS Internasional and Bintang Samudera 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 Bintang Samudera. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTS Internasional and Bintang Samudera.
Diversification Opportunities for GTS Internasional and Bintang Samudera
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GTS and Bintang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GTS Internasional Tbk and Bintang Samudera Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Samudera Mandiri 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 Bintang Samudera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Samudera Mandiri has no effect on the direction of GTS Internasional i.e., GTS Internasional and Bintang Samudera go up and down completely randomly.
Pair Corralation between GTS Internasional and Bintang Samudera
Assuming the 90 days trading horizon GTS Internasional Tbk is expected to under-perform the Bintang Samudera. But the stock apears to be less risky and, when comparing its historical volatility, GTS Internasional Tbk is 1.28 times less risky than Bintang Samudera. The stock trades about -0.04 of its potential returns per unit of risk. The Bintang Samudera Mandiri is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 16,408 in Bintang Samudera Mandiri on August 24, 2024 and sell it today you would lose (6,108) from holding Bintang Samudera Mandiri or give up 37.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTS Internasional Tbk vs. Bintang Samudera Mandiri
Performance |
| Timeline |
| GTS Internasional Tbk |
| Bintang Samudera Mandiri |
GTS Internasional and Bintang Samudera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTS Internasional and Bintang Samudera
The main advantage of trading using opposite GTS Internasional and Bintang Samudera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTS Internasional position performs unexpectedly, Bintang Samudera 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 Bintang Samudera will offset losses from the drop in Bintang Samudera's long position.| GTS Internasional vs. PT Dewi Shri | GTS Internasional vs. Habco Trans Maritima | GTS Internasional vs. PT Hasnur Internasional | GTS Internasional vs. PT Toba Surimi |
| Bintang Samudera vs. Bank Central Asia | Bintang Samudera vs. Bank Rakyat Indonesia | Bintang Samudera vs. Bayan Resources Tbk | Bintang Samudera 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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