Correlation Between Perusahaan Gas and Gunawan Dianjaya
Can any of the company-specific risk be diversified away by investing in both Perusahaan Gas and Gunawan Dianjaya 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 Perusahaan Gas and Gunawan Dianjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Gas Negara and Gunawan Dianjaya Steel, you can compare the effects of market volatilities on Perusahaan Gas and Gunawan Dianjaya 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 Perusahaan Gas with a short position of Gunawan Dianjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Gas and Gunawan Dianjaya.
Diversification Opportunities for Perusahaan Gas and Gunawan Dianjaya
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perusahaan and Gunawan is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Gas Negara and Gunawan Dianjaya Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunawan Dianjaya Steel and Perusahaan Gas 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 Perusahaan Gas Negara are associated (or correlated) with Gunawan Dianjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunawan Dianjaya Steel has no effect on the direction of Perusahaan Gas i.e., Perusahaan Gas and Gunawan Dianjaya go up and down completely randomly.
Pair Corralation between Perusahaan Gas and Gunawan Dianjaya
Assuming the 90 days trading horizon Perusahaan Gas Negara is expected to generate 0.52 times more return on investment than Gunawan Dianjaya. However, Perusahaan Gas Negara is 1.93 times less risky than Gunawan Dianjaya. It trades about 0.06 of its potential returns per unit of risk. Gunawan Dianjaya Steel is currently generating about -0.28 per unit of risk. If you would invest 150,500 in Perusahaan Gas Negara on August 31, 2024 and sell it today you would earn a total of 3,500 from holding Perusahaan Gas Negara or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Gas Negara vs. Gunawan Dianjaya Steel
Performance |
| Timeline |
| Perusahaan Gas Negara |
| Gunawan Dianjaya Steel |
Perusahaan Gas and Gunawan Dianjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Gas and Gunawan Dianjaya
The main advantage of trading using opposite Perusahaan Gas and Gunawan Dianjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Gas position performs unexpectedly, Gunawan Dianjaya 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 Gunawan Dianjaya will offset losses from the drop in Gunawan Dianjaya's long position.| Perusahaan Gas vs. Aneka Tambang Persero | Perusahaan Gas vs. Bukit Asam Tbk | Perusahaan Gas vs. Telkom Indonesia Tbk | Perusahaan Gas vs. Astra International Tbk |
| Gunawan Dianjaya vs. Perusahaan Gas Negara | Gunawan Dianjaya vs. Vale Indonesia Tbk | Gunawan Dianjaya vs. Telkom Indonesia Tbk | Gunawan Dianjaya 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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