Correlation Between Intraco Penta and Gema Grahasarana
Can any of the company-specific risk be diversified away by investing in both Intraco Penta and Gema Grahasarana 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 Intraco Penta and Gema Grahasarana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intraco Penta Tbk and Gema Grahasarana Tbk, you can compare the effects of market volatilities on Intraco Penta and Gema Grahasarana 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 Intraco Penta with a short position of Gema Grahasarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intraco Penta and Gema Grahasarana.
Diversification Opportunities for Intraco Penta and Gema Grahasarana
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intraco and Gema is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intraco Penta Tbk and Gema Grahasarana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gema Grahasarana Tbk and Intraco Penta 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 Intraco Penta Tbk are associated (or correlated) with Gema Grahasarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gema Grahasarana Tbk has no effect on the direction of Intraco Penta i.e., Intraco Penta and Gema Grahasarana go up and down completely randomly.
Pair Corralation between Intraco Penta and Gema Grahasarana
Assuming the 90 days trading horizon Intraco Penta Tbk is expected to generate 2.33 times more return on investment than Gema Grahasarana. However, Intraco Penta is 2.33 times more volatile than Gema Grahasarana Tbk. It trades about 0.07 of its potential returns per unit of risk. Gema Grahasarana Tbk is currently generating about 0.0 per unit of risk. If you would invest 800.00 in Intraco Penta Tbk on August 30, 2024 and sell it today you would earn a total of 300.00 from holding Intraco Penta Tbk or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intraco Penta Tbk vs. Gema Grahasarana Tbk
Performance |
| Timeline |
| Intraco Penta Tbk |
| Gema Grahasarana Tbk |
Intraco Penta and Gema Grahasarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intraco Penta and Gema Grahasarana
The main advantage of trading using opposite Intraco Penta and Gema Grahasarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intraco Penta position performs unexpectedly, Gema Grahasarana 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 Gema Grahasarana will offset losses from the drop in Gema Grahasarana's long position.| Intraco Penta vs. Indonesian Tobacco Tbk | Intraco Penta vs. Ashmore Asset Management | Intraco Penta vs. Communication Cable Systems | Intraco Penta vs. First Media Tbk |
| Gema Grahasarana vs. Fortune Indonesia Tbk | Gema Grahasarana vs. Fks Multi Agro | Gema Grahasarana vs. Bayu Buana Tbk | Gema Grahasarana vs. Fast Food Indonesia |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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