Correlation Between Hensel Davest and Gaya Abadi
Can any of the company-specific risk be diversified away by investing in both Hensel Davest and Gaya Abadi 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 Hensel Davest and Gaya Abadi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hensel Davest Indonesia and Gaya Abadi Sempurna, you can compare the effects of market volatilities on Hensel Davest and Gaya Abadi 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 Hensel Davest with a short position of Gaya Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hensel Davest and Gaya Abadi.
Diversification Opportunities for Hensel Davest and Gaya Abadi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hensel and Gaya is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hensel Davest Indonesia and Gaya Abadi Sempurna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaya Abadi Sempurna and Hensel Davest 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 Hensel Davest Indonesia are associated (or correlated) with Gaya Abadi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaya Abadi Sempurna has no effect on the direction of Hensel Davest i.e., Hensel Davest and Gaya Abadi go up and down completely randomly.
Pair Corralation between Hensel Davest and Gaya Abadi
Assuming the 90 days trading horizon Hensel Davest Indonesia is expected to generate 2.9 times more return on investment than Gaya Abadi. However, Hensel Davest is 2.9 times more volatile than Gaya Abadi Sempurna. It trades about -0.06 of its potential returns per unit of risk. Gaya Abadi Sempurna is currently generating about -0.4 per unit of risk. If you would invest 1,600 in Hensel Davest Indonesia on August 27, 2024 and sell it today you would lose (100.00) from holding Hensel Davest Indonesia or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hensel Davest Indonesia vs. Gaya Abadi Sempurna
Performance |
| Timeline |
| Hensel Davest Indonesia |
| Gaya Abadi Sempurna |
Hensel Davest and Gaya Abadi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hensel Davest and Gaya Abadi
The main advantage of trading using opposite Hensel Davest and Gaya Abadi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hensel Davest position performs unexpectedly, Gaya Abadi 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 Gaya Abadi will offset losses from the drop in Gaya Abadi's long position.| Hensel Davest vs. Kioson Komersial Indonesia | Hensel Davest vs. Sentral Mitra Informatika | Hensel Davest vs. Multipolar Technology Tbk | Hensel Davest vs. Nusantara Voucher Distribution |
| Gaya Abadi vs. Multipolar Technology Tbk | Gaya Abadi vs. Nusantara Voucher Distribution | Gaya Abadi vs. Hensel Davest Indonesia | Gaya Abadi vs. Anabatic Technologies 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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