Correlation Between Hotel Sahid and Gunawan Dianjaya
Can any of the company-specific risk be diversified away by investing in both Hotel Sahid and Gunawan Dianjaya 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 Hotel Sahid and Gunawan Dianjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Sahid Jaya and Gunawan Dianjaya Steel, you can compare the effects of market volatilities on Hotel Sahid and Gunawan Dianjaya 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 Hotel Sahid with a short position of Gunawan Dianjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sahid and Gunawan Dianjaya.
Diversification Opportunities for Hotel Sahid and Gunawan Dianjaya
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hotel and Gunawan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sahid Jaya and Gunawan Dianjaya Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunawan Dianjaya Steel and Hotel Sahid 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 Hotel Sahid Jaya are associated (or correlated) with Gunawan Dianjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunawan Dianjaya Steel has no effect on the direction of Hotel Sahid i.e., Hotel Sahid and Gunawan Dianjaya go up and down completely randomly.
Pair Corralation between Hotel Sahid and Gunawan Dianjaya
Assuming the 90 days trading horizon Hotel Sahid Jaya is expected to under-perform the Gunawan Dianjaya. But the stock apears to be less risky and, when comparing its historical volatility, Hotel Sahid Jaya is 1.14 times less risky than Gunawan Dianjaya. The stock trades about -0.01 of its potential returns per unit of risk. The Gunawan Dianjaya Steel is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,156 in Gunawan Dianjaya Steel on August 24, 2024 and sell it today you would earn a total of 444.00 from holding Gunawan Dianjaya Steel or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Sahid Jaya vs. Gunawan Dianjaya Steel
Performance |
| Timeline |
| Hotel Sahid Jaya |
| Gunawan Dianjaya Steel |
Hotel Sahid and Gunawan Dianjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sahid and Gunawan Dianjaya
The main advantage of trading using opposite Hotel Sahid and Gunawan Dianjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sahid position performs unexpectedly, Gunawan Dianjaya 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 Gunawan Dianjaya will offset losses from the drop in Gunawan Dianjaya's long position.| Hotel Sahid vs. Mitra Pinasthika Mustika | Hotel Sahid vs. Integra Indocabinet Tbk | Hotel Sahid vs. Indosat Tbk | Hotel Sahid vs. Gajah Tunggal Tbk |
| Gunawan Dianjaya vs. Kedaung Indah Can | Gunawan Dianjaya vs. Langgeng Makmur Industri | Gunawan Dianjaya vs. Kabelindo Murni Tbk | Gunawan Dianjaya vs. Champion Pacific Indonesia |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |