Correlation Between Pioneerindo Gourmet and Pembangunan Graha
Can any of the company-specific risk be diversified away by investing in both Pioneerindo Gourmet and Pembangunan Graha 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 Pioneerindo Gourmet and Pembangunan Graha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneerindo Gourmet International and Pembangunan Graha Lestari, you can compare the effects of market volatilities on Pioneerindo Gourmet and Pembangunan Graha 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 Pioneerindo Gourmet with a short position of Pembangunan Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneerindo Gourmet and Pembangunan Graha.
Diversification Opportunities for Pioneerindo Gourmet and Pembangunan Graha
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pioneerindo and Pembangunan is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pioneerindo Gourmet Internatio and Pembangunan Graha Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Graha Lestari and Pioneerindo Gourmet 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 Pioneerindo Gourmet International are associated (or correlated) with Pembangunan Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Graha Lestari has no effect on the direction of Pioneerindo Gourmet i.e., Pioneerindo Gourmet and Pembangunan Graha go up and down completely randomly.
Pair Corralation between Pioneerindo Gourmet and Pembangunan Graha
Assuming the 90 days trading horizon Pioneerindo Gourmet International is expected to under-perform the Pembangunan Graha. In addition to that, Pioneerindo Gourmet is 1.45 times more volatile than Pembangunan Graha Lestari. It trades about -0.02 of its total potential returns per unit of risk. Pembangunan Graha Lestari is currently generating about 0.01 per unit of volatility. If you would invest 22,491 in Pembangunan Graha Lestari on August 25, 2024 and sell it today you would lose (3,391) from holding Pembangunan Graha Lestari or give up 15.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pioneerindo Gourmet Internatio vs. Pembangunan Graha Lestari
Performance |
| Timeline |
| Pioneerindo Gourmet |
| Pembangunan Graha Lestari |
Pioneerindo Gourmet and Pembangunan Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneerindo Gourmet and Pembangunan Graha
The main advantage of trading using opposite Pioneerindo Gourmet and Pembangunan Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneerindo Gourmet position performs unexpectedly, Pembangunan Graha 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 Pembangunan Graha will offset losses from the drop in Pembangunan Graha's long position.| Pioneerindo Gourmet vs. PT Dewi Shri | Pioneerindo Gourmet vs. Bangun Karya Perkasa | Pioneerindo Gourmet vs. Gaya Abadi Sempurna | Pioneerindo Gourmet vs. Habco Trans Maritima |
| Pembangunan Graha vs. Red Planet Indonesia | Pembangunan Graha vs. Pudjiadi Sons Tbk | Pembangunan Graha vs. Pembangunan Jaya Ancol | Pembangunan Graha 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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