Correlation Between Grand Kartech and City Retail
Can any of the company-specific risk be diversified away by investing in both Grand Kartech 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 Grand Kartech and City Retail 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 City Retail Developments, you can compare the effects of market volatilities on Grand Kartech 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 Grand Kartech with a short position of City Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Kartech and City Retail.
Diversification Opportunities for Grand Kartech and City Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and City is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Kartech Tbk 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 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 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 Grand Kartech i.e., Grand Kartech and City Retail go up and down completely randomly.
Pair Corralation between Grand Kartech and City Retail
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. City Retail Developments
Performance |
| Timeline |
| Grand Kartech Tbk |
| City Retail Developments |
Grand Kartech and City Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Kartech and City Retail
The main advantage of trading using opposite Grand Kartech and City Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Kartech 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.| Grand Kartech vs. Intanwijaya Internasional Tbk | Grand Kartech vs. Champion Pacific Indonesia | Grand Kartech vs. Mitra Pinasthika Mustika | Grand Kartech vs. Jakarta Int Hotels |
| City Retail vs. Mitra Pinasthika Mustika | City Retail vs. Jakarta Int Hotels | City Retail vs. Asuransi Harta Aman | City Retail vs. Indosterling Technomedia 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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