Correlation Between Gaya Abadi and Repower Asia
Can any of the company-specific risk be diversified away by investing in both Gaya Abadi and Repower Asia 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 Repower Asia 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 Repower Asia Indonesia, you can compare the effects of market volatilities on Gaya Abadi and Repower Asia 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 Repower Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaya Abadi and Repower Asia.
Diversification Opportunities for Gaya Abadi and Repower Asia
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gaya and Repower is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gaya Abadi Sempurna and Repower Asia Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repower Asia Indonesia 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 Repower Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repower Asia Indonesia has no effect on the direction of Gaya Abadi i.e., Gaya Abadi and Repower Asia go up and down completely randomly.
Pair Corralation between Gaya Abadi and Repower Asia
Assuming the 90 days trading horizon Gaya Abadi Sempurna is expected to under-perform the Repower Asia. But the stock apears to be less risky and, when comparing its historical volatility, Gaya Abadi Sempurna is 1.9 times less risky than Repower Asia. The stock trades about -0.08 of its potential returns per unit of risk. The Repower Asia Indonesia is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Repower Asia Indonesia on August 28, 2024 and sell it today you would lose (4,200) from holding Repower Asia Indonesia or give up 84.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Gaya Abadi Sempurna vs. Repower Asia Indonesia
Performance |
| Timeline |
| Gaya Abadi Sempurna |
| Repower Asia Indonesia |
Gaya Abadi and Repower Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaya Abadi and Repower Asia
The main advantage of trading using opposite Gaya Abadi and Repower Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaya Abadi position performs unexpectedly, Repower Asia 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 Repower Asia will offset losses from the drop in Repower Asia'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 |
| Repower Asia vs. Bumi Benowo Sukses | Repower Asia vs. Andalan Sakti Primaindo | Repower Asia vs. Bhakti Multi Artha | Repower Asia vs. Greenwood Sejahtera 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |