Correlation Between Grand Kartech and Buana Listya
Can any of the company-specific risk be diversified away by investing in both Grand Kartech and Buana Listya 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 Grand Kartech and Buana Listya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Kartech Tbk and Buana Listya Tama, you can compare the effects of market volatilities on Grand Kartech and Buana Listya 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 Grand Kartech with a short position of Buana Listya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Kartech and Buana Listya.
Diversification Opportunities for Grand Kartech and Buana Listya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and Buana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Kartech Tbk and Buana Listya Tama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buana Listya Tama and Grand Kartech 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 Grand Kartech Tbk are associated (or correlated) with Buana Listya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buana Listya Tama has no effect on the direction of Grand Kartech i.e., Grand Kartech and Buana Listya go up and down completely randomly.
Pair Corralation between Grand Kartech and Buana Listya
If you would invest 43,600 in Grand Kartech Tbk on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Grand Kartech Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Kartech Tbk vs. Buana Listya Tama
Performance |
| Timeline |
| Grand Kartech Tbk |
| Buana Listya Tama |
Grand Kartech and Buana Listya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Kartech and Buana Listya
The main advantage of trading using opposite Grand Kartech and Buana Listya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Kartech position performs unexpectedly, Buana Listya 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 Buana Listya will offset losses from the drop in Buana Listya's long position.| Grand Kartech vs. Matahari Department Store | Grand Kartech vs. Multi Medika Internasional | Grand Kartech vs. Visi Media Asia | Grand Kartech vs. Bayan Resources Tbk |
| Buana Listya vs. Ciptadana Asset Management | Buana Listya vs. Grand Kartech Tbk | Buana Listya vs. Anabatic Technologies Tbk | Buana Listya vs. Galva Technologies 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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