Correlation Between Pembangunan Graha and Obm Drilchem
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha and Obm Drilchem 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 Pembangunan Graha and Obm Drilchem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembangunan Graha Lestari and Obm Drilchem PT, you can compare the effects of market volatilities on Pembangunan Graha and Obm Drilchem 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 Pembangunan Graha with a short position of Obm Drilchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Obm Drilchem.
Diversification Opportunities for Pembangunan Graha and Obm Drilchem
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pembangunan and Obm is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari and Obm Drilchem PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Obm Drilchem PT and Pembangunan Graha 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 Pembangunan Graha Lestari are associated (or correlated) with Obm Drilchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Obm Drilchem PT has no effect on the direction of Pembangunan Graha i.e., Pembangunan Graha and Obm Drilchem go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Obm Drilchem
Assuming the 90 days trading horizon Pembangunan Graha is expected to generate 2.64 times less return on investment than Obm Drilchem. In addition to that, Pembangunan Graha is 1.51 times more volatile than Obm Drilchem PT. It trades about 0.01 of its total potential returns per unit of risk. Obm Drilchem PT is currently generating about 0.03 per unit of volatility. If you would invest 17,700 in Obm Drilchem PT on August 31, 2024 and sell it today you would earn a total of 3,700 from holding Obm Drilchem PT or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Obm Drilchem PT
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Obm Drilchem PT |
Pembangunan Graha and Obm Drilchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Obm Drilchem
The main advantage of trading using opposite Pembangunan Graha and Obm Drilchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha position performs unexpectedly, Obm Drilchem 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 Obm Drilchem will offset losses from the drop in Obm Drilchem's long position.| Pembangunan Graha vs. Red Planet Indonesia | Pembangunan Graha vs. Pudjiadi Sons Tbk | Pembangunan Graha vs. Pembangunan Jaya Ancol | Pembangunan Graha vs. Pioneerindo Gourmet International |
| Obm Drilchem vs. RMK Energy PT | Obm Drilchem vs. PT Hasnur Internasional | Obm Drilchem vs. Surya Biru Murni | Obm Drilchem vs. PAM Mineral 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 Positions Ratings module to 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.
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