Correlation Between Merdeka Copper and Graha Andrasentra
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Graha Andrasentra 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 Merdeka Copper and Graha Andrasentra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merdeka Copper Gold and Graha Andrasentra Propertindo, you can compare the effects of market volatilities on Merdeka Copper and Graha Andrasentra 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 Merdeka Copper with a short position of Graha Andrasentra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Graha Andrasentra.
Diversification Opportunities for Merdeka Copper and Graha Andrasentra
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Merdeka and Graha is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Graha Andrasentra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Andrasentra and Merdeka Copper 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 Merdeka Copper Gold are associated (or correlated) with Graha Andrasentra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Andrasentra has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Graha Andrasentra go up and down completely randomly.
Pair Corralation between Merdeka Copper and Graha Andrasentra
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to under-perform the Graha Andrasentra. But the stock apears to be less risky and, when comparing its historical volatility, Merdeka Copper Gold is 4.04 times less risky than Graha Andrasentra. The stock trades about -0.38 of its potential returns per unit of risk. The Graha Andrasentra Propertindo is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 900.00 in Graha Andrasentra Propertindo on August 30, 2024 and sell it today you would lose (200.00) from holding Graha Andrasentra Propertindo or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Graha Andrasentra Propertindo
Performance |
| Timeline |
| Merdeka Copper Gold |
| Graha Andrasentra |
Merdeka Copper and Graha Andrasentra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Graha Andrasentra
The main advantage of trading using opposite Merdeka Copper and Graha Andrasentra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Graha Andrasentra 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 Graha Andrasentra will offset losses from the drop in Graha Andrasentra's long position.| Merdeka Copper vs. PT Sarana Menara | Merdeka Copper vs. Tower Bersama Infrastructure | Merdeka Copper vs. Pabrik Kertas Tjiwi | Merdeka Copper vs. Mitra Keluarga Karyasehat |
| Graha Andrasentra vs. Dyandra Media International | Graha Andrasentra vs. Protech Mitra Perkasa | Graha Andrasentra vs. Envy Technologies Indonesia | Graha Andrasentra vs. Garuda Metalindo 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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