Correlation Between Graha Andrasentra and Dyandra Media
Can any of the company-specific risk be diversified away by investing in both Graha Andrasentra and Dyandra Media 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 Dyandra Media 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 Dyandra Media International, you can compare the effects of market volatilities on Graha Andrasentra and Dyandra Media 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 Dyandra Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Andrasentra and Dyandra Media.
Diversification Opportunities for Graha Andrasentra and Dyandra Media
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Graha and Dyandra is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Graha Andrasentra Propertindo and Dyandra Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyandra Media Intern 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 Dyandra Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyandra Media Intern has no effect on the direction of Graha Andrasentra i.e., Graha Andrasentra and Dyandra Media go up and down completely randomly.
Pair Corralation between Graha Andrasentra and Dyandra Media
Assuming the 90 days trading horizon Graha Andrasentra Propertindo is expected to under-perform the Dyandra Media. In addition to that, Graha Andrasentra is 6.11 times more volatile than Dyandra Media International. It trades about -0.06 of its total potential returns per unit of risk. Dyandra Media International is currently generating about -0.19 per unit of volatility. If you would invest 10,300 in Dyandra Media International on August 30, 2024 and sell it today you would lose (700.00) from holding Dyandra Media International or give up 6.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graha Andrasentra Propertindo vs. Dyandra Media International
Performance |
| Timeline |
| Graha Andrasentra |
| Dyandra Media Intern |
Graha Andrasentra and Dyandra Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Andrasentra and Dyandra Media
The main advantage of trading using opposite Graha Andrasentra and Dyandra Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Andrasentra position performs unexpectedly, Dyandra Media 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 Dyandra Media will offset losses from the drop in Dyandra Media's long position.| Graha Andrasentra vs. Dyandra Media International | Graha Andrasentra vs. Protech Mitra Perkasa | Graha Andrasentra vs. Envy Technologies Indonesia | Graha Andrasentra vs. Garuda Metalindo Tbk |
| Dyandra Media vs. Electronic City Indonesia | Dyandra Media vs. Steel Pipe Industry | Dyandra Media vs. Visi Media Asia | Dyandra Media vs. Bekasi Fajar Industrial |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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