Correlation Between Graha Andrasentra and Metrodata Electronics
Can any of the company-specific risk be diversified away by investing in both Graha Andrasentra and Metrodata Electronics 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 Metrodata Electronics 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 Metrodata Electronics Tbk, you can compare the effects of market volatilities on Graha Andrasentra and Metrodata Electronics 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 Metrodata Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Andrasentra and Metrodata Electronics.
Diversification Opportunities for Graha Andrasentra and Metrodata Electronics
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graha and Metrodata is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Graha Andrasentra Propertindo and Metrodata Electronics Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrodata Electronics Tbk 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 Metrodata Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrodata Electronics Tbk has no effect on the direction of Graha Andrasentra i.e., Graha Andrasentra and Metrodata Electronics go up and down completely randomly.
Pair Corralation between Graha Andrasentra and Metrodata Electronics
Assuming the 90 days trading horizon Graha Andrasentra Propertindo is expected to under-perform the Metrodata Electronics. In addition to that, Graha Andrasentra is 8.59 times more volatile than Metrodata Electronics Tbk. It trades about -0.06 of its total potential returns per unit of risk. Metrodata Electronics Tbk is currently generating about -0.15 per unit of volatility. If you would invest 64,000 in Metrodata Electronics Tbk on August 30, 2024 and sell it today you would lose (2,500) from holding Metrodata Electronics Tbk or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graha Andrasentra Propertindo vs. Metrodata Electronics Tbk
Performance |
| Timeline |
| Graha Andrasentra |
| Metrodata Electronics Tbk |
Graha Andrasentra and Metrodata Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Andrasentra and Metrodata Electronics
The main advantage of trading using opposite Graha Andrasentra and Metrodata Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Andrasentra position performs unexpectedly, Metrodata Electronics 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 Metrodata Electronics will offset losses from the drop in Metrodata Electronics' 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 |
| Metrodata Electronics vs. Multipolar Tbk | Metrodata Electronics vs. Astra Graphia Tbk | Metrodata Electronics vs. Matahari Putra Prima | Metrodata Electronics vs. Ramayana Lestari Sentosa |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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