Correlation Between Grand Kartech and Communication Cable
Can any of the company-specific risk be diversified away by investing in both Grand Kartech and Communication Cable 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 Communication Cable 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 Communication Cable Systems, you can compare the effects of market volatilities on Grand Kartech and Communication Cable 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 Communication Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Kartech and Communication Cable.
Diversification Opportunities for Grand Kartech and Communication Cable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and Communication is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Kartech Tbk and Communication Cable Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Communication Cable 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 Communication Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Communication Cable has no effect on the direction of Grand Kartech i.e., Grand Kartech and Communication Cable go up and down completely randomly.
Pair Corralation between Grand Kartech and Communication Cable
If you would invest 43,600 in Grand Kartech Tbk on September 3, 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. Communication Cable Systems
Performance |
| Timeline |
| Grand Kartech Tbk |
| Communication Cable |
Grand Kartech and Communication Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Kartech and Communication Cable
The main advantage of trading using opposite Grand Kartech and Communication Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Kartech position performs unexpectedly, Communication Cable 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 Communication Cable will offset losses from the drop in Communication Cable's long position.| Grand Kartech vs. Intanwijaya Internasional Tbk | Grand Kartech vs. Champion Pacific Indonesia | Grand Kartech vs. Mitra Pinasthika Mustika | Grand Kartech vs. Jakarta Int Hotels |
| Communication Cable vs. Estika Tata Tiara | Communication Cable vs. Garudafood Putra Putri | Communication Cable vs. PT Indonesia Kendaraan | Communication Cable vs. Mitra Pinasthika Mustika |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |