Correlation Between Zeon and PT Gajah
Can any of the company-specific risk be diversified away by investing in both Zeon and PT Gajah 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 Zeon and PT Gajah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zeon Corporation and PT Gajah Tunggal, you can compare the effects of market volatilities on Zeon and PT Gajah 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 Zeon with a short position of PT Gajah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zeon and PT Gajah.
Diversification Opportunities for Zeon and PT Gajah
Very good diversification
The 3 months correlation between Zeon and GH8 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zeon Corp. and PT Gajah Tunggal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gajah Tunggal and Zeon 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 Zeon Corporation are associated (or correlated) with PT Gajah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gajah Tunggal has no effect on the direction of Zeon i.e., Zeon and PT Gajah go up and down completely randomly.
Pair Corralation between Zeon and PT Gajah
Assuming the 90 days horizon Zeon Corporation is expected to generate 0.12 times more return on investment than PT Gajah. However, Zeon Corporation is 8.47 times less risky than PT Gajah. It trades about 0.11 of its potential returns per unit of risk. PT Gajah Tunggal is currently generating about -0.03 per unit of risk. If you would invest 840.00 in Zeon Corporation on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Zeon Corporation or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zeon Corp. vs. PT Gajah Tunggal
Performance |
| Timeline |
| Zeon |
| PT Gajah Tunggal |
Zeon and PT Gajah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zeon and PT Gajah
The main advantage of trading using opposite Zeon and PT Gajah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zeon position performs unexpectedly, PT Gajah 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 PT Gajah will offset losses from the drop in PT Gajah's long position.| Zeon vs. Cogent Communications Holdings | Zeon vs. Lion One Metals | Zeon vs. Rogers Communications | Zeon vs. CHINA OIL AND |
| PT Gajah vs. SCANSOURCE | PT Gajah vs. RETAIL FOOD GROUP | PT Gajah vs. AUTO TRADER ADR | PT Gajah vs. GungHo Online Entertainment |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |