Correlation Between GTS Internasional and PAM Mineral
Can any of the company-specific risk be diversified away by investing in both GTS Internasional and PAM Mineral 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 PAM Mineral 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 PAM Mineral Tbk, you can compare the effects of market volatilities on GTS Internasional and PAM Mineral 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 PAM Mineral. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTS Internasional and PAM Mineral.
Diversification Opportunities for GTS Internasional and PAM Mineral
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GTS and PAM is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GTS Internasional Tbk and PAM Mineral Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAM Mineral Tbk 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 PAM Mineral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAM Mineral Tbk has no effect on the direction of GTS Internasional i.e., GTS Internasional and PAM Mineral go up and down completely randomly.
Pair Corralation between GTS Internasional and PAM Mineral
Assuming the 90 days trading horizon GTS Internasional Tbk is expected to under-perform the PAM Mineral. But the stock apears to be less risky and, when comparing its historical volatility, GTS Internasional Tbk is 1.25 times less risky than PAM Mineral. The stock trades about -0.31 of its potential returns per unit of risk. The PAM Mineral Tbk is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 27,200 in PAM Mineral Tbk on August 28, 2024 and sell it today you would earn a total of 3,200 from holding PAM Mineral Tbk or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTS Internasional Tbk vs. PAM Mineral Tbk
Performance |
| Timeline |
| GTS Internasional Tbk |
| PAM Mineral Tbk |
GTS Internasional and PAM Mineral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTS Internasional and PAM Mineral
The main advantage of trading using opposite GTS Internasional and PAM Mineral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTS Internasional position performs unexpectedly, PAM Mineral 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 PAM Mineral will offset losses from the drop in PAM Mineral'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 |
| PAM Mineral vs. Merdeka Copper Gold | PAM Mineral vs. Aneka Tambang Persero | PAM Mineral vs. Bumi Resources Minerals | PAM Mineral vs. Timah Persero 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |