Correlation Between Armada Berjaya and Guna Timur
Can any of the company-specific risk be diversified away by investing in both Armada Berjaya and Guna Timur 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 Armada Berjaya and Guna Timur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Berjaya Trans and Guna Timur Raya, you can compare the effects of market volatilities on Armada Berjaya and Guna Timur 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 Armada Berjaya with a short position of Guna Timur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Berjaya and Guna Timur.
Diversification Opportunities for Armada Berjaya and Guna Timur
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Armada and Guna is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Armada Berjaya Trans and Guna Timur Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guna Timur Raya and Armada Berjaya 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 Armada Berjaya Trans are associated (or correlated) with Guna Timur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guna Timur Raya has no effect on the direction of Armada Berjaya i.e., Armada Berjaya and Guna Timur go up and down completely randomly.
Pair Corralation between Armada Berjaya and Guna Timur
Assuming the 90 days trading horizon Armada Berjaya is expected to generate 6.46 times less return on investment than Guna Timur. But when comparing it to its historical volatility, Armada Berjaya Trans is 1.5 times less risky than Guna Timur. It trades about 0.1 of its potential returns per unit of risk. Guna Timur Raya is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 8,500 in Guna Timur Raya on October 24, 2024 and sell it today you would earn a total of 1,300 from holding Guna Timur Raya or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Berjaya Trans vs. Guna Timur Raya
Performance |
| Timeline |
| Armada Berjaya Trans |
| Guna Timur Raya |
Armada Berjaya and Guna Timur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Berjaya and Guna Timur
The main advantage of trading using opposite Armada Berjaya and Guna Timur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Berjaya position performs unexpectedly, Guna Timur 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 Guna Timur will offset losses from the drop in Guna Timur's long position.| Armada Berjaya vs. Guna Timur Raya | Armada Berjaya vs. Sinergi Inti Plastindo | Armada Berjaya vs. Hartadinata Abadi Tbk | Armada Berjaya vs. Weha Transportasi Indonesia |
| Guna Timur vs. Sriwahana | Guna Timur vs. PT Trimuda Nuansa | Guna Timur vs. Yelooo Integra Datanet | Guna Timur vs. Transcoal Pacific 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |