Correlation Between Gaya Abadi and PT Cilacap
Can any of the company-specific risk be diversified away by investing in both Gaya Abadi and PT Cilacap 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 Gaya Abadi and PT Cilacap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaya Abadi Sempurna and PT Cilacap Samudera, you can compare the effects of market volatilities on Gaya Abadi and PT Cilacap 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 Gaya Abadi with a short position of PT Cilacap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaya Abadi and PT Cilacap.
Diversification Opportunities for Gaya Abadi and PT Cilacap
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaya and ASHA is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gaya Abadi Sempurna and PT Cilacap Samudera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Cilacap Samudera and Gaya Abadi 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 Gaya Abadi Sempurna are associated (or correlated) with PT Cilacap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Cilacap Samudera has no effect on the direction of Gaya Abadi i.e., Gaya Abadi and PT Cilacap go up and down completely randomly.
Pair Corralation between Gaya Abadi and PT Cilacap
Assuming the 90 days trading horizon Gaya Abadi Sempurna is expected to under-perform the PT Cilacap. But the stock apears to be less risky and, when comparing its historical volatility, Gaya Abadi Sempurna is 1.24 times less risky than PT Cilacap. The stock trades about -0.08 of its potential returns per unit of risk. The PT Cilacap Samudera is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 7,100 in PT Cilacap Samudera on August 28, 2024 and sell it today you would lose (5,900) from holding PT Cilacap Samudera or give up 83.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaya Abadi Sempurna vs. PT Cilacap Samudera
Performance |
| Timeline |
| Gaya Abadi Sempurna |
| PT Cilacap Samudera |
Gaya Abadi and PT Cilacap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaya Abadi and PT Cilacap
The main advantage of trading using opposite Gaya Abadi and PT Cilacap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaya Abadi position performs unexpectedly, PT Cilacap 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 Cilacap will offset losses from the drop in PT Cilacap's long position.| Gaya Abadi vs. Multipolar Technology Tbk | Gaya Abadi vs. Nusantara Voucher Distribution | Gaya Abadi vs. Hensel Davest Indonesia | Gaya Abadi vs. Anabatic Technologies Tbk |
| PT Cilacap vs. Bank Central Asia | PT Cilacap vs. Bank Rakyat Indonesia | PT Cilacap vs. Bayan Resources Tbk | PT Cilacap vs. Bank Mandiri Persero |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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