Correlation Between Perusahaan Perseroan and GUOTAI JUNAN
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and GUOTAI JUNAN 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 Perusahaan Perseroan and GUOTAI JUNAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Perseroan PT and GUOTAI JUNAN SEC, you can compare the effects of market volatilities on Perusahaan Perseroan and GUOTAI JUNAN 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 Perusahaan Perseroan with a short position of GUOTAI JUNAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and GUOTAI JUNAN.
Diversification Opportunities for Perusahaan Perseroan and GUOTAI JUNAN
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perusahaan and GUOTAI is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and GUOTAI JUNAN SEC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOTAI JUNAN SEC and Perusahaan Perseroan 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 Perusahaan Perseroan PT are associated (or correlated) with GUOTAI JUNAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOTAI JUNAN SEC has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and GUOTAI JUNAN go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and GUOTAI JUNAN
Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the GUOTAI JUNAN. But the stock apears to be less risky and, when comparing its historical volatility, Perusahaan Perseroan PT is 2.55 times less risky than GUOTAI JUNAN. The stock trades about -0.04 of its potential returns per unit of risk. The GUOTAI JUNAN SEC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 49.00 in GUOTAI JUNAN SEC on September 4, 2024 and sell it today you would earn a total of 91.00 from holding GUOTAI JUNAN SEC or generate 185.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Perseroan PT vs. GUOTAI JUNAN SEC
Performance |
| Timeline |
| Perusahaan Perseroan |
| GUOTAI JUNAN SEC |
Perusahaan Perseroan and GUOTAI JUNAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and GUOTAI JUNAN
The main advantage of trading using opposite Perusahaan Perseroan and GUOTAI JUNAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, GUOTAI JUNAN 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 GUOTAI JUNAN will offset losses from the drop in GUOTAI JUNAN's long position.| Perusahaan Perseroan vs. The Trade Desk | Perusahaan Perseroan vs. Auto Trader Group | Perusahaan Perseroan vs. BE Semiconductor Industries | Perusahaan Perseroan vs. Vastned Retail NV |
| GUOTAI JUNAN vs. The Goldman Sachs | GUOTAI JUNAN vs. The Goldman Sachs | GUOTAI JUNAN vs. Superior Plus Corp | GUOTAI JUNAN vs. NMI Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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