Correlation Between Gaya Abadi and Multipolar Technology
Can any of the company-specific risk be diversified away by investing in both Gaya Abadi and Multipolar Technology 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 Multipolar Technology 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 Multipolar Technology Tbk, you can compare the effects of market volatilities on Gaya Abadi and Multipolar Technology 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 Multipolar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaya Abadi and Multipolar Technology.
Diversification Opportunities for Gaya Abadi and Multipolar Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaya and Multipolar is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gaya Abadi Sempurna and Multipolar Technology Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multipolar Technology Tbk 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 Multipolar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multipolar Technology Tbk has no effect on the direction of Gaya Abadi i.e., Gaya Abadi and Multipolar Technology go up and down completely randomly.
Pair Corralation between Gaya Abadi and Multipolar Technology
Assuming the 90 days trading horizon Gaya Abadi Sempurna is expected to under-perform the Multipolar Technology. But the stock apears to be less risky and, when comparing its historical volatility, Gaya Abadi Sempurna is 1.22 times less risky than Multipolar Technology. The stock trades about -0.07 of its potential returns per unit of risk. The Multipolar Technology Tbk is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 163,874 in Multipolar Technology Tbk on September 2, 2024 and sell it today you would earn a total of 1,976,126 from holding Multipolar Technology Tbk or generate 1205.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaya Abadi Sempurna vs. Multipolar Technology Tbk
Performance |
| Timeline |
| Gaya Abadi Sempurna |
| Multipolar Technology Tbk |
Gaya Abadi and Multipolar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaya Abadi and Multipolar Technology
The main advantage of trading using opposite Gaya Abadi and Multipolar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaya Abadi position performs unexpectedly, Multipolar Technology 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 Multipolar Technology will offset losses from the drop in Multipolar Technology'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 |
| Multipolar Technology vs. Link Net Tbk | Multipolar Technology vs. Metrodata Electronics Tbk | Multipolar Technology vs. Mitra Pinasthika Mustika | Multipolar Technology vs. Multipolar 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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