Correlation Between Global Sukses and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Global Sukses and Trimegah Karya 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 Global Sukses and Trimegah Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Sukses Solusi and Trimegah Karya Pratama, you can compare the effects of market volatilities on Global Sukses and Trimegah Karya 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 Global Sukses with a short position of Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Sukses and Trimegah Karya.
Diversification Opportunities for Global Sukses and Trimegah Karya
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Trimegah is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Global Sukses Solusi and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama and Global Sukses 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 Global Sukses Solusi are associated (or correlated) with Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of Global Sukses i.e., Global Sukses and Trimegah Karya go up and down completely randomly.
Pair Corralation between Global Sukses and Trimegah Karya
Assuming the 90 days trading horizon Global Sukses Solusi is expected to generate 1.41 times more return on investment than Trimegah Karya. However, Global Sukses is 1.41 times more volatile than Trimegah Karya Pratama. It trades about 0.02 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about -0.04 per unit of risk. If you would invest 5,500 in Global Sukses Solusi on November 28, 2024 and sell it today you would lose (100.00) from holding Global Sukses Solusi or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.45% |
| Values | Daily Returns |
Global Sukses Solusi vs. Trimegah Karya Pratama
Performance |
| Timeline |
| Global Sukses Solusi |
| Trimegah Karya Pratama |
Global Sukses and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Sukses and Trimegah Karya
The main advantage of trading using opposite Global Sukses and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Sukses position performs unexpectedly, Trimegah Karya 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 Trimegah Karya will offset losses from the drop in Trimegah Karya's long position.| Global Sukses vs. Trimegah Karya Pratama | Global Sukses vs. Surya Biru Murni | Global Sukses vs. Indo Oil Perkasa | Global Sukses vs. Wira Global Solusi |
| Trimegah Karya vs. Siloam International Hospitals | Trimegah Karya vs. Mahaka Media Tbk | Trimegah Karya vs. Garuda Metalindo Tbk | Trimegah Karya vs. Hero Supermarket Tbk |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |