Correlation Between Pembangunan Graha and Pt Pakuan
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha and Pt Pakuan 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 Pt Pakuan 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 Pt Pakuan Tbk, you can compare the effects of market volatilities on Pembangunan Graha and Pt Pakuan 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 Pt Pakuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Pt Pakuan.
Diversification Opportunities for Pembangunan Graha and Pt Pakuan
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pembangunan and UANG is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari and Pt Pakuan Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pakuan 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 Pt Pakuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pakuan Tbk has no effect on the direction of Pembangunan Graha i.e., Pembangunan Graha and Pt Pakuan go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Pt Pakuan
If you would invest 73,500 in Pt Pakuan Tbk on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Pt Pakuan Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Pt Pakuan Tbk
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Pt Pakuan Tbk |
Pembangunan Graha and Pt Pakuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Pt Pakuan
The main advantage of trading using opposite Pembangunan Graha and Pt Pakuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha position performs unexpectedly, Pt Pakuan 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 Pt Pakuan will offset losses from the drop in Pt Pakuan'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 |
| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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