Correlation Between Pembangunan Graha and Panorama Sentrawisata
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha and Panorama Sentrawisata 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 Panorama Sentrawisata 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 Panorama Sentrawisata Tbk, you can compare the effects of market volatilities on Pembangunan Graha and Panorama Sentrawisata 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 Panorama Sentrawisata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Panorama Sentrawisata.
Diversification Opportunities for Pembangunan Graha and Panorama Sentrawisata
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pembangunan and Panorama is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari and Panorama Sentrawisata Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panorama Sentrawisata Tbk 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 Panorama Sentrawisata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panorama Sentrawisata Tbk has no effect on the direction of Pembangunan Graha i.e., Pembangunan Graha and Panorama Sentrawisata go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Panorama Sentrawisata
Assuming the 90 days trading horizon Pembangunan Graha Lestari is expected to generate 3.1 times more return on investment than Panorama Sentrawisata. However, Pembangunan Graha is 3.1 times more volatile than Panorama Sentrawisata Tbk. It trades about 0.17 of its potential returns per unit of risk. Panorama Sentrawisata Tbk is currently generating about -0.05 per unit of risk. If you would invest 17,800 in Pembangunan Graha Lestari on August 29, 2024 and sell it today you would earn a total of 1,500 from holding Pembangunan Graha Lestari or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Panorama Sentrawisata Tbk
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Panorama Sentrawisata Tbk |
Pembangunan Graha and Panorama Sentrawisata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Panorama Sentrawisata
The main advantage of trading using opposite Pembangunan Graha and Panorama Sentrawisata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha position performs unexpectedly, Panorama Sentrawisata 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 Panorama Sentrawisata will offset losses from the drop in Panorama Sentrawisata'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 |
| Panorama Sentrawisata vs. Pembangunan Jaya Ancol | Panorama Sentrawisata vs. Hotel Sahid Jaya | Panorama Sentrawisata vs. Pudjiadi Sons Tbk | Panorama Sentrawisata vs. Pioneerindo Gourmet 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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