Correlation Between GTS Internasional and Champ Resto
Can any of the company-specific risk be diversified away by investing in both GTS Internasional and Champ Resto 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 Champ Resto 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 Champ Resto Indonesia, you can compare the effects of market volatilities on GTS Internasional and Champ Resto 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 Champ Resto. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTS Internasional and Champ Resto.
Diversification Opportunities for GTS Internasional and Champ Resto
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GTS and Champ is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding GTS Internasional Tbk and Champ Resto Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champ Resto 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 Champ Resto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champ Resto Indonesia has no effect on the direction of GTS Internasional i.e., GTS Internasional and Champ Resto go up and down completely randomly.
Pair Corralation between GTS Internasional and Champ Resto
Assuming the 90 days trading horizon GTS Internasional Tbk is expected to generate 1.0 times more return on investment than Champ Resto. However, GTS Internasional Tbk is 1.0 times less risky than Champ Resto. It trades about -0.03 of its potential returns per unit of risk. Champ Resto Indonesia is currently generating about -0.09 per unit of risk. If you would invest 6,100 in GTS Internasional Tbk on August 27, 2024 and sell it today you would lose (2,700) from holding GTS Internasional Tbk or give up 44.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTS Internasional Tbk vs. Champ Resto Indonesia
Performance |
| Timeline |
| GTS Internasional Tbk |
| Champ Resto Indonesia |
GTS Internasional and Champ Resto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTS Internasional and Champ Resto
The main advantage of trading using opposite GTS Internasional and Champ Resto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTS Internasional position performs unexpectedly, Champ Resto 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 Champ Resto will offset losses from the drop in Champ Resto'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 |
| Champ Resto vs. Autopedia Sukses Lestari | Champ Resto vs. Adaro Minerals Indonesia | Champ Resto vs. Cisarua Mountain Dairy | Champ Resto vs. Avia Avian PT |
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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |