Correlation Between Graha Andrasentra and City Retail
Can any of the company-specific risk be diversified away by investing in both Graha Andrasentra and City Retail 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 City Retail 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 City Retail Developments, you can compare the effects of market volatilities on Graha Andrasentra and City Retail 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 City Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Andrasentra and City Retail.
Diversification Opportunities for Graha Andrasentra and City Retail
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Graha and City is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Graha Andrasentra Propertindo and City Retail Developments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Retail Developments 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 City Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Retail Developments has no effect on the direction of Graha Andrasentra i.e., Graha Andrasentra and City Retail go up and down completely randomly.
Pair Corralation between Graha Andrasentra and City Retail
Assuming the 90 days trading horizon Graha Andrasentra Propertindo is expected to under-perform the City Retail. In addition to that, Graha Andrasentra is 13.67 times more volatile than City Retail Developments. It trades about -0.06 of its total potential returns per unit of risk. City Retail Developments is currently generating about -0.07 per unit of volatility. If you would invest 14,500 in City Retail Developments on September 12, 2024 and sell it today you would lose (1,500) from holding City Retail Developments or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
Graha Andrasentra Propertindo vs. City Retail Developments
Performance |
| Timeline |
| Graha Andrasentra |
| City Retail Developments |
Graha Andrasentra and City Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Andrasentra and City Retail
The main advantage of trading using opposite Graha Andrasentra and City Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Andrasentra position performs unexpectedly, City Retail 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 City Retail will offset losses from the drop in City Retail's long position.| Graha Andrasentra vs. Garudafood Putra Putri | Graha Andrasentra vs. Pacific Strategic Financial | Graha Andrasentra vs. Lippo General Insurance | Graha Andrasentra vs. Panin Financial Tbk |
| City Retail vs. Ciputra Development Tbk | City Retail vs. Bumi Serpong Damai | City Retail vs. Alam Sutera Realty | City Retail vs. Lippo Karawaci 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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