Correlation Between Gaya Abadi and Lima Dua
Can any of the company-specific risk be diversified away by investing in both Gaya Abadi and Lima Dua 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 Lima Dua 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 Lima Dua Lima, you can compare the effects of market volatilities on Gaya Abadi and Lima Dua 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 Lima Dua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaya Abadi and Lima Dua.
Diversification Opportunities for Gaya Abadi and Lima Dua
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaya and Lima is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gaya Abadi Sempurna and Lima Dua Lima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lima Dua Lima 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 Lima Dua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lima Dua Lima has no effect on the direction of Gaya Abadi i.e., Gaya Abadi and Lima Dua go up and down completely randomly.
Pair Corralation between Gaya Abadi and Lima Dua
Assuming the 90 days trading horizon Gaya Abadi Sempurna is expected to under-perform the Lima Dua. In addition to that, Gaya Abadi is 1.4 times more volatile than Lima Dua Lima. It trades about -0.07 of its total potential returns per unit of risk. Lima Dua Lima is currently generating about -0.01 per unit of volatility. If you would invest 16,100 in Lima Dua Lima on September 2, 2024 and sell it today you would lose (3,300) from holding Lima Dua Lima or give up 20.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaya Abadi Sempurna vs. Lima Dua Lima
Performance |
| Timeline |
| Gaya Abadi Sempurna |
| Lima Dua Lima |
Gaya Abadi and Lima Dua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaya Abadi and Lima Dua
The main advantage of trading using opposite Gaya Abadi and Lima Dua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaya Abadi position performs unexpectedly, Lima Dua 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 Lima Dua will offset losses from the drop in Lima Dua's long position.| Gaya Abadi vs. Pollux Properti Indonesia | Gaya Abadi vs. MNC Vision Networks | Gaya Abadi vs. Medikaloka Hermina PT | Gaya Abadi vs. Surya Permata Andalan |
| Lima Dua vs. Imago Mulia Persada | Lima Dua vs. PT Sunter Lakeside | Lima Dua vs. Damai Sejahtera Abadi | Lima Dua vs. Panca Anugrah Wisesa |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |