Correlation Between Pembangunan Graha and Prima Alloy
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha and Prima Alloy 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 Prima Alloy 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 Prima Alloy Steel, you can compare the effects of market volatilities on Pembangunan Graha and Prima Alloy 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 Prima Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Prima Alloy.
Diversification Opportunities for Pembangunan Graha and Prima Alloy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pembangunan and Prima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari and Prima Alloy Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prima Alloy Steel 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 Prima Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prima Alloy Steel has no effect on the direction of Pembangunan Graha i.e., Pembangunan Graha and Prima Alloy go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Prima Alloy
If you would invest 17,100 in Pembangunan Graha Lestari on September 13, 2024 and sell it today you would earn a total of 1,300 from holding Pembangunan Graha Lestari or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Prima Alloy Steel
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Prima Alloy Steel |
Pembangunan Graha and Prima Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Prima Alloy
The main advantage of trading using opposite Pembangunan Graha and Prima Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha position performs unexpectedly, Prima Alloy 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 Prima Alloy will offset losses from the drop in Prima Alloy'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 |
| Prima Alloy vs. Pan Brothers Tbk | Prima Alloy vs. Ricky Putra Globalindo | Prima Alloy vs. Asia Pacific Fibers | Prima Alloy vs. Multi Prima Sejahtera |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |