Correlation Between Graha Andrasentra and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both Graha Andrasentra and Japfa Comfeed 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 Japfa Comfeed 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 Japfa Comfeed Indonesia, you can compare the effects of market volatilities on Graha Andrasentra and Japfa Comfeed 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 Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Andrasentra and Japfa Comfeed.
Diversification Opportunities for Graha Andrasentra and Japfa Comfeed
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graha and Japfa is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Graha Andrasentra Propertindo and Japfa Comfeed Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japfa Comfeed Indonesia 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 Japfa Comfeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japfa Comfeed Indonesia has no effect on the direction of Graha Andrasentra i.e., Graha Andrasentra and Japfa Comfeed go up and down completely randomly.
Pair Corralation between Graha Andrasentra and Japfa Comfeed
Assuming the 90 days trading horizon Graha Andrasentra Propertindo is expected to generate 3.54 times more return on investment than Japfa Comfeed. However, Graha Andrasentra is 3.54 times more volatile than Japfa Comfeed Indonesia. It trades about 0.07 of its potential returns per unit of risk. Japfa Comfeed Indonesia is currently generating about 0.1 per unit of risk. If you would invest 500.00 in Graha Andrasentra Propertindo on September 3, 2024 and sell it today you would earn a total of 200.00 from holding Graha Andrasentra Propertindo or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graha Andrasentra Propertindo vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| Graha Andrasentra |
| Japfa Comfeed Indonesia |
Graha Andrasentra and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Andrasentra and Japfa Comfeed
The main advantage of trading using opposite Graha Andrasentra and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Andrasentra position performs unexpectedly, Japfa Comfeed 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 Japfa Comfeed will offset losses from the drop in Japfa Comfeed's long position.| Graha Andrasentra vs. City Retail Developments | Graha Andrasentra vs. Indosterling Technomedia Tbk | Graha Andrasentra vs. PT Charlie Hospital | Graha Andrasentra vs. Protech Mitra Perkasa |
| Japfa Comfeed vs. Charoen Pokphand Indonesia | Japfa Comfeed vs. Kalbe Farma Tbk | Japfa Comfeed vs. Indofood Cbp Sukses | Japfa Comfeed vs. PT Indofood Sukses |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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