Correlation Between Gaya Abadi and PT Hetzer
Can any of the company-specific risk be diversified away by investing in both Gaya Abadi and PT Hetzer 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 Hetzer 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 Hetzer Medical, you can compare the effects of market volatilities on Gaya Abadi and PT Hetzer 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 Hetzer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaya Abadi and PT Hetzer.
Diversification Opportunities for Gaya Abadi and PT Hetzer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaya and MEDS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaya Abadi Sempurna and PT Hetzer Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hetzer Medical 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 Hetzer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hetzer Medical has no effect on the direction of Gaya Abadi i.e., Gaya Abadi and PT Hetzer go up and down completely randomly.
Pair Corralation between Gaya Abadi and PT Hetzer
Assuming the 90 days trading horizon Gaya Abadi Sempurna is expected to under-perform the PT Hetzer. In addition to that, Gaya Abadi is 1.34 times more volatile than PT Hetzer Medical. It trades about -0.03 of its total potential returns per unit of risk. PT Hetzer Medical is currently generating about 0.01 per unit of volatility. If you would invest 5,200 in PT Hetzer Medical on September 3, 2024 and sell it today you would lose (200.00) from holding PT Hetzer Medical or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaya Abadi Sempurna vs. PT Hetzer Medical
Performance |
| Timeline |
| Gaya Abadi Sempurna |
| PT Hetzer Medical |
Gaya Abadi and PT Hetzer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaya Abadi and PT Hetzer
The main advantage of trading using opposite Gaya Abadi and PT Hetzer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaya Abadi position performs unexpectedly, PT Hetzer 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 Hetzer will offset losses from the drop in PT Hetzer'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 |
| PT Hetzer vs. Mitra Pinasthika Mustika | PT Hetzer vs. Jakarta Int Hotels | PT Hetzer vs. Asuransi Harta Aman | PT Hetzer vs. Indosterling Technomedia 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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