Correlation Between Gaya Abadi and Meta Epsi
Can any of the company-specific risk be diversified away by investing in both Gaya Abadi and Meta Epsi 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 Meta Epsi 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 Meta Epsi Tbk, you can compare the effects of market volatilities on Gaya Abadi and Meta Epsi 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 Meta Epsi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaya Abadi and Meta Epsi.
Diversification Opportunities for Gaya Abadi and Meta Epsi
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaya and Meta is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gaya Abadi Sempurna and Meta Epsi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Epsi 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 Meta Epsi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Epsi Tbk has no effect on the direction of Gaya Abadi i.e., Gaya Abadi and Meta Epsi go up and down completely randomly.
Pair Corralation between Gaya Abadi and Meta Epsi
Assuming the 90 days trading horizon Gaya Abadi Sempurna is expected to under-perform the Meta Epsi. But the stock apears to be less risky and, when comparing its historical volatility, Gaya Abadi Sempurna is 1.56 times less risky than Meta Epsi. The stock trades about -0.08 of its potential returns per unit of risk. The Meta Epsi Tbk is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 10,100 in Meta Epsi Tbk on September 12, 2024 and sell it today you would lose (8,700) from holding Meta Epsi Tbk or give up 86.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Gaya Abadi Sempurna vs. Meta Epsi Tbk
Performance |
| Timeline |
| Gaya Abadi Sempurna |
| Meta Epsi Tbk |
Gaya Abadi and Meta Epsi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaya Abadi and Meta Epsi
The main advantage of trading using opposite Gaya Abadi and Meta Epsi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaya Abadi position performs unexpectedly, Meta Epsi 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 Meta Epsi will offset losses from the drop in Meta Epsi's long position.| Gaya Abadi vs. Pollux Properti Indonesia | Gaya Abadi vs. Medikaloka Hermina PT | Gaya Abadi vs. Trisula Textile Industries | Gaya Abadi vs. Mitrabara Adiperdana PT |
| Meta Epsi vs. PT Hetzer Medical | Meta Epsi vs. PT Dewi Shri | Meta Epsi vs. PT Sari Kreasi | Meta Epsi vs. Gaya Abadi Sempurna |
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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