Correlation Between Indonesian Tobacco and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Indonesian Tobacco 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 Indonesian Tobacco and Grand Kartech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indonesian Tobacco Tbk and Grand Kartech Tbk, you can compare the effects of market volatilities on Indonesian Tobacco 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 Indonesian Tobacco with a short position of Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indonesian Tobacco and Grand Kartech.
Diversification Opportunities for Indonesian Tobacco and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indonesian and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indonesian Tobacco Tbk 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 Indonesian Tobacco 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 Indonesian Tobacco Tbk 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 Indonesian Tobacco i.e., Indonesian Tobacco and Grand Kartech go up and down completely randomly.
Pair Corralation between Indonesian Tobacco and Grand Kartech
If you would invest 43,600 in Grand Kartech Tbk on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Grand Kartech Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indonesian Tobacco Tbk vs. Grand Kartech Tbk
Performance |
| Timeline |
| Indonesian Tobacco Tbk |
| Grand Kartech Tbk |
Indonesian Tobacco and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indonesian Tobacco and Grand Kartech
The main advantage of trading using opposite Indonesian Tobacco and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indonesian Tobacco 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.| Indonesian Tobacco vs. Wismilak Inti Makmur | Indonesian Tobacco vs. J Resources Asia | Indonesian Tobacco vs. Transcoal Pacific Tbk | Indonesian Tobacco vs. Garudafood Putra Putri |
| Grand Kartech vs. Alumindo Light Metal | Grand Kartech vs. Enseval Putra Megatrading | Grand Kartech vs. Garuda Metalindo Tbk | Grand Kartech vs. Equity Development Investment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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