Correlation Between Pembangunan Graha and Ancora Indonesia
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha and Ancora Indonesia 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 Ancora Indonesia 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 Ancora Indonesia Resources, you can compare the effects of market volatilities on Pembangunan Graha and Ancora Indonesia 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 Ancora Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Ancora Indonesia.
Diversification Opportunities for Pembangunan Graha and Ancora Indonesia
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pembangunan and Ancora is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari and Ancora Indonesia Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancora Indonesia Res 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 Ancora Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancora Indonesia Res has no effect on the direction of Pembangunan Graha i.e., Pembangunan Graha and Ancora Indonesia go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Ancora Indonesia
Assuming the 90 days trading horizon Pembangunan Graha Lestari is expected to generate 0.6 times more return on investment than Ancora Indonesia. However, Pembangunan Graha Lestari is 1.65 times less risky than Ancora Indonesia. It trades about 0.08 of its potential returns per unit of risk. Ancora Indonesia Resources is currently generating about -0.06 per unit of risk. If you would invest 18,400 in Pembangunan Graha Lestari on August 25, 2024 and sell it today you would earn a total of 700.00 from holding Pembangunan Graha Lestari or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Ancora Indonesia Resources
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Ancora Indonesia Res |
Pembangunan Graha and Ancora Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Ancora Indonesia
The main advantage of trading using opposite Pembangunan Graha and Ancora Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha position performs unexpectedly, Ancora Indonesia 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 Ancora Indonesia will offset losses from the drop in Ancora Indonesia'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 |
| Ancora Indonesia vs. Lautan Luas Tbk | Ancora Indonesia vs. Multi Indocitra Tbk | Ancora Indonesia vs. Pembangunan Graha Lestari | Ancora Indonesia vs. Millennium Pharmacon International |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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