Correlation Between Champion Pacific and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Champion Pacific and Grand Kartech 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 Champion Pacific and Grand Kartech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Pacific Indonesia and Grand Kartech Tbk, you can compare the effects of market volatilities on Champion Pacific and Grand Kartech 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 Champion Pacific with a short position of Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Pacific and Grand Kartech.
Diversification Opportunities for Champion Pacific and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Champion and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Champion Pacific Indonesia and Grand Kartech Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Kartech Tbk and Champion Pacific 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 Champion Pacific Indonesia are associated (or correlated) with Grand Kartech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Kartech Tbk has no effect on the direction of Champion Pacific i.e., Champion Pacific and Grand Kartech go up and down completely randomly.
Pair Corralation between Champion Pacific and Grand Kartech
If you would invest 50,000 in Champion Pacific Indonesia on September 3, 2024 and sell it today you would earn a total of 500.00 from holding Champion Pacific Indonesia or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Champion Pacific Indonesia vs. Grand Kartech Tbk
Performance |
| Timeline |
| Champion Pacific Ind |
| Grand Kartech Tbk |
Champion Pacific and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Pacific and Grand Kartech
The main advantage of trading using opposite Champion Pacific and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Pacific position performs unexpectedly, Grand Kartech 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 Grand Kartech will offset losses from the drop in Grand Kartech's long position.| Champion Pacific vs. Timah Persero Tbk | Champion Pacific vs. Semen Indonesia Persero | Champion Pacific vs. Mitra Pinasthika Mustika | Champion Pacific vs. Jakarta Int Hotels |
| Grand Kartech vs. Intanwijaya Internasional Tbk | Grand Kartech vs. Champion Pacific Indonesia | Grand Kartech vs. Mitra Pinasthika Mustika | Grand Kartech vs. Jakarta Int Hotels |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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