Correlation Between Graha Andrasentra and Communication Cable
Can any of the company-specific risk be diversified away by investing in both Graha Andrasentra and Communication Cable 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 Graha Andrasentra and Communication Cable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graha Andrasentra Propertindo and Communication Cable Systems, you can compare the effects of market volatilities on Graha Andrasentra and Communication Cable 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 Graha Andrasentra with a short position of Communication Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Andrasentra and Communication Cable.
Diversification Opportunities for Graha Andrasentra and Communication Cable
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Graha and Communication is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Graha Andrasentra Propertindo and Communication Cable Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Communication Cable and Graha Andrasentra 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 Graha Andrasentra Propertindo are associated (or correlated) with Communication Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Communication Cable has no effect on the direction of Graha Andrasentra i.e., Graha Andrasentra and Communication Cable go up and down completely randomly.
Pair Corralation between Graha Andrasentra and Communication Cable
Assuming the 90 days trading horizon Graha Andrasentra Propertindo is expected to under-perform the Communication Cable. In addition to that, Graha Andrasentra is 1.41 times more volatile than Communication Cable Systems. It trades about -0.09 of its total potential returns per unit of risk. Communication Cable Systems is currently generating about 0.05 per unit of volatility. If you would invest 25,000 in Communication Cable Systems on September 2, 2024 and sell it today you would earn a total of 600.00 from holding Communication Cable Systems or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graha Andrasentra Propertindo vs. Communication Cable Systems
Performance |
| Timeline |
| Graha Andrasentra |
| Communication Cable |
Graha Andrasentra and Communication Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Andrasentra and Communication Cable
The main advantage of trading using opposite Graha Andrasentra and Communication Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Andrasentra position performs unexpectedly, Communication Cable 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 Communication Cable will offset losses from the drop in Communication Cable's long position.| Graha Andrasentra vs. Communication Cable Systems | Graha Andrasentra vs. Indofood Cbp Sukses | Graha Andrasentra vs. PT Wahana Interfood | Graha Andrasentra vs. Sentra Food Indonesia |
| Communication Cable vs. Berkah Prima Perkasa | Communication Cable vs. Hartadinata Abadi Tbk | Communication Cable vs. Estika Tata Tiara | Communication Cable vs. Garudafood Putra Putri |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |