Correlation Between ADHI KARYA and GPT
Can any of the company-specific risk be diversified away by investing in both ADHI KARYA and GPT 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 ADHI KARYA and GPT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADHI KARYA and GPT Group, you can compare the effects of market volatilities on ADHI KARYA and GPT 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 ADHI KARYA with a short position of GPT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADHI KARYA and GPT.
Diversification Opportunities for ADHI KARYA and GPT
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ADHI and GPT is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ADHI KARYA and GPT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPT Group and ADHI KARYA 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 ADHI KARYA are associated (or correlated) with GPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPT Group has no effect on the direction of ADHI KARYA i.e., ADHI KARYA and GPT go up and down completely randomly.
Pair Corralation between ADHI KARYA and GPT
Assuming the 90 days trading horizon ADHI KARYA is expected to generate 6.61 times more return on investment than GPT. However, ADHI KARYA is 6.61 times more volatile than GPT Group. It trades about 0.18 of its potential returns per unit of risk. GPT Group is currently generating about 0.09 per unit of risk. If you would invest 0.75 in ADHI KARYA on September 4, 2024 and sell it today you would earn a total of 0.40 from holding ADHI KARYA or generate 53.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADHI KARYA vs. GPT Group
Performance |
| Timeline |
| ADHI KARYA |
| GPT Group |
ADHI KARYA and GPT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADHI KARYA and GPT
The main advantage of trading using opposite ADHI KARYA and GPT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADHI KARYA position performs unexpectedly, GPT 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 GPT will offset losses from the drop in GPT's long position.| ADHI KARYA vs. Tower Semiconductor | ADHI KARYA vs. LANDSEA HOMES P | ADHI KARYA vs. Haverty Furniture Companies | ADHI KARYA vs. DFS Furniture PLC |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |